Canadian investment firm Brookfield Reinsurance approved on Wednesday to take the remaining stake in American Equity Investment Life Holding (AEL) that it did not already own for $4.3 billion.
The companies indicated the agreement would pay AEL investors $55 per share, a 6.3 percent premium to the stock’s closing price on Monday. Shareholders are to receive $38.85 in cash and 0.49707 Brookfield Asset Management Ltd (BAM).
Brookfield Reinsurance first proposed taking full ownership of AEL in June 2023 in a letter to the latter’s board of directors, which suggested an aggregate consideration of $55.00 per AEL share.
“The transaction represents an opportunity for AEL shareholders, through the BAM Shares, to remain invested in a market leading global alternative asset manager,” Anant Bhalla, President and Chief Executive Officer (CEO) of AEL, said.
