American Fairness companions with Brookfield, rejects Athene, MassMutual takeover bid By Reuters

(Reuters) – American Fairness Funding Life Holding Co (N:) mentioned on Sunday that it entered right into a strategic partnership with Brookfield Asset Administration Inc (TO:) and rejected an unsolicited acquisition proposal from Athene Holding Ltd (N:) and Massachusetts Mutual Life Insurance coverage Co.

Canadian personal fairness agency Brookfield is taking a 19.9% stake in American Fairness at $37 per share for an preliminary funding, the corporate mentioned in an announcement https://refini.television/3o2vkhI.

Brookfield is buying its American Fairness shares in two installments, the primary at a value of $37 per share and the second at a variable value the place the ground is $37 a share.

It should additionally reinsure as much as $10 billion of American Fairness fastened index annuity liabilities.

Brookfield can even obtain a board seat on American Fairness following the preliminary funding.

The board of American Fairness rejected the unsolicited acquisition proposal from Athene and MassMutual made public on Oct. 1, saying it considerably undervalued the corporate. That deal was valued at greater than $three billion.

“For the reason that board of administrators of American Fairness has determined to reject our joint proposal, we are going to proceed with the execution of our standalone technique,” Athene Holdings mentioned in response to the rejection.

The American Fairness board has additionally licensed the share repurchase of as much as $500 million of frequent shares to be funded with the proceeds of the Brookfield fairness funding and money readily available, the corporate mentioned.

The repurchase is predicted to offset dilution from the issuance of frequent shares to Brookfield, the corporate added.