Shares of insurance products provider American Equity Investment Life Holding Company (NYSE:AEL) are up in double digits today after it confirmed an acquisition proposal from Brookfield Reinsurance (NYSE:BNRE).
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Brookfield has offered to acquire all outstanding shares of AEL (which it does not already own) at $55 apiece. This includes $38.85 per share in cash and $16.15 per share in Class A shares of Brookfield Asset Management (NYSE:BAM).
Now, AEL’s Board has granted a limited waiver to Brookfield Reinsurance over its standstill obligation so the latter can make the proposal. While AEL investors are not required to take any action yet, the company noted, “The Board will carefully review Brookfield Reinsurance’s proposal… and American Equity will have no further comment on the proposal until the Board has completed its review.”
AEL has been a longtime takeover candidate and Brookfield is already the biggest stakeholder in the company with 20% ownership.
Today’s price gains further build up on the 12.4% rise in AEL shares over the past month alone.
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