Life and annuity insurer, American Equity has confirmed that its Board of Directors has reviewed and rejected an unsolicited, non-binding proposal from Prosperity Group Holdings LP, and its principal shareholder, Elliott Investment Management L.P., to acquire American Equity in an all-cash transaction at $45.00 per share.
The initial proposal was received by American Equity on December 8, 2022 and rejected on December 12, 2022.
On December 19, 2022, Prosperity sent a second letter restating the same price and economic terms. American Equity reiterated its rejection on December 20, 2022.
Ardea Partners and J.P. Morgan are serving as financial advisors, and Sullivan & Cromwell LLP is serving as legal advisor to American Equity.
“The Board is fully committed to acting in the best interests of AEL and its shareholders and policyholders. Consistent with its fiduciary obligations and in consultation with independent financial and legal advisors, the Board has carefully evaluated Prosperity and Elliott’s opportunistic proposal and unanimously determined that it significantly undervalues the Company,” said David S. Mulcahy, Chair of American Equity.
“The Board strongly believes that the continued execution of our strategic plan, AEL 2.0, will generate significantly greater value for all shareholders.”
“Over the past two years, we have demonstrated that executing our AEL 2.0 strategy is delivering value for all shareholders. Through our unique go-to-market and investment management approaches and capital-light structure, we are accelerating the implementation and scaling of our AEL 2.0 strategy to be the leading, customer-focused annuity provider with best-in-class capabilities across the entire insurance value chain,” added Anant Bhalla, CEO and President of American Equity.
“Our Board processes are thorough, and our Board and management team remain laser-focused on serving our policyholders and generating value for shareholders.”
