: Brookfield Reinsurance to acquire remaining shares of AEL in $4.3 billion cash-and-stock deal

Brookfield Reinsurance Ltd. BNRE has agreed to acquire the shares of American Equity Investment Life Holding Co. AEL, or AEL, it does not already own in a cash-and-stock deal valued at $4.3 billion. Under the terms of the deal, AEL shareholders will receive $55 per AEL share, consisting of $38.83 in cash and 0.49797 of a Brookfield Asset Management Ltd. BAM class A limited voting share with a value of $16.15, subject to adjustment. The price is equal to a 35% premium over AEL’s undisturbed closing share price on June 23, and a 42% premium to AEL’s 90-day volume-weighted average price as of that date. “This transaction represents an important step in the continued growth of our insurance business, further diversifying, and scaling, our insurance capabilities, and is a direct result of the partnership we have developed with AEL since our initial investment in 2020,” said Brookfield Reinsurance CEO Sachin Shah in a statement. The deal is expected to close in the first half and will not be dilutive to BAM, BN or Brookfield Reinsurance. Once ti closes, AEL shares will be delisted from the NYSE. AEL’s stock rose 2.4% premarket.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.