A proxy statement has revealed that Aspen Insurance Holdings’ financial advisors held discussions with 26 companies to gauge interest about making an offer for the company, four of which were in the final bid process, with Apollo eventually agreeing a deal.
It was announced at the end of August 2018 that Aspen had agreed to be acquired by funds under management of Apollo Global Management, LLC, for $2.6 billion.
The deal will result in Apollo Funds acquiring all of the outstanding shares of Aspen for $42.75 each in cash. However, a proxy statement has now revealed that Apollo lowered its bid before agreeing the deal. According to the proxy, on April 27th 2018 Apollo submitted a bid to acquire 100% of Aspen for $45-$47 per share in a cash offer, which it then revised in response to a counter-offer from another party, to $44-$45 per share in early May.
By the start of July, all other parties had withdrawn from the bidding process and Apollo remained the only bidder, with an exclusive agreement being reached between Apollo and Aspen on July 11th 2018. Following this, on July 27th 2018, Apollo confirmed its $44-$45 per share offer, and also requested that the exclusivity agreement be extended through late August.
Then, on August 15th 2018, Apollo again revised its offer to $41 per share, before a counter offer from Aspen resulted in the final $42.75 per share all cash final price.
The acquisition is expected to close in the first half of 2019, subject to regulatory approval and approval from Aspen’s shareholders, as well as satisfactory completion of closing conditions.
