Prosperity Group Holdings has released a statement affirming that it remains interested in acquiring life and annuity insurer American Equity, despite the company having rejected a recent takeover bid.
On December 8th, Prosperity made an offer to acquire American Equity Investment Life Holding Company (AEL) in an all-cash transaction at $45.00 per share, which was rejected by AEL on the basis that the bid “signficantly undervalues the company.”
Prosperity sent AEL a subsequent letter reaffirming its interest in an acquisition, which AEL dismissed as offering “the same price and economic terms.”
However, Prosperity says that it had in fact been prepared to improve its offer following due diligence with “an even more attractive premium.”
“Notwithstanding the Company’s reluctance to meaningfully explore this potential value-creation opportunity, Prosperity remains committed to the openness expressed in our December 19th letter to AEL’s board and management and to a combination with AEL that provides attractive value for its shareholders and combines the strengths of Prosperity and AEL under one company,” Prosperity commented.
