Private equity firm Apollo Global Management is set to buy an 18% incremental stake in leading retirement services firm Athene, at a premium, in order to strengthen the strategic relationship and reinforce the alignment of interests between the two firms.
The transaction includes a share exchange between Apollo and Athene, purchase by Apollo of Athene shares, and eliminates Athene’s current multi-class share structure.
It’s hoped this structural shift will significantly improve Athene’s index inclusion eligibility and expand Athene’s investor base.
“Today’s announcement reflects the strength and strategic nature of our longstanding relationship with Apollo,” explained Jim Belardi, Chairman and Chief Executive Officer of Athene.
“After carefully reviewing Athene’s options to unlock value for shareholders, Athene and Apollo determined it is prudent to eliminate Athene’s multi-class share structure and make other enhancements to the companies’ mutually beneficial relationship.
Belardi added that the deal will remove a material impediment to additional index inclusion and strengthen corporate governance by aligning voting rights with the economic interests of all shareholders.
“We believe the combination of these factors will greatly enhance Athene’s appeal to a much broader group of active and passive investors.”
Leon Black, Chairman and CEO of Apollo, added, “We are tremendously excited to be announcing this strategic transaction, which we believe will meaningfully enhance value for both Apollo and Athene shareholders.
“Athene and Apollo have developed a special and symbiotic relationship since Athene’s inception a decade ago. By nearly doubling our economic interest in Athene to approximately 35%, we are reinforcing the durability of our relationship, and enhancing the strong alignment between the two companies.”
