(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 a press release https://refini.television/3o2vkhI.
Brookfield is buying its American Fairness shares in two installments, the primary at a worth of $37 per share and the second at a variable worth the place the ground is $37 a share.
It can additionally reinsure as much as $10 billion of American Fairness mounted index annuity liabilities.
Brookfield may also 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 $3 billion.
The American Fairness board has additionally approved 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.
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