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American Equity Turns Down Prosperity Life & Elliott’s Buyout Offer

American Equity Turns Down Prosperity Life & Elliott's Buyout Offer

American Equity Turns Down Prosperity Life & Elliott’s Buyout Offer

American Equity Turns Down Prosperity Life & Elliott’s Buyout Offer

Prosperity Group Holdings LP and its largest shareholder, Elliott Investment Management L.P., made an unsolicited, non-binding offer to buy American Equity in an all-cash deal for $45.00 per share, but the board of directors of the life and annuity insurer American Equity has confirmed that it has reviewed and rejected the offer.

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American Equity received the initial bid on December 8, 2022, and on December 12, 2022, they rejected it.

The prosperity sent a follow-up letter on December 19, 2022, reiterating the same price and terms. On December 20, 2022, American Equity once again rejected the proposal.

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Ardea Partners and J.P. Morgan are serving as financial advisors, and Sullivan & Cromwell LLP is serving as legal advisors to American Equity.

American Equity Turns Down Prosperity Life & Elliott’s Buyout Offer

“The Board is fully committed to acting in the best interests of AEL and its shareholders and policyholders. Consistent with its fiduciary obligations and in consultation with independent financial and legal advisors, the Board has carefully evaluated Prosperity and Elliott’s opportunistic proposal and unanimously determined that it significantly undervalues the Company,” said David S. Mulcahy, Chair of American Equity.

“The Board strongly believes that the continued execution of our strategic plan, AEL 2.0, will generate significantly greater value for all shareholders.”

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“Over the past two years, we have demonstrated that executing our AEL 2.0 strategy is delivering value for all shareholders. Through our unique go-to-market and investment management approaches and capital-light structure, we are accelerating the implementation and scaling of our AEL 2.0 strategy to be the leading, customer-focused annuity provider with best-in-class capabilities across the entire insurance value chain,” added Anant Bhalla, CEO, and President of American Equity.

“Our Board processes are thorough, and our Board and management team remain laser-focused on serving our policyholders and generating value for shareholders.”


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