Brookfield Reinsurance signs deal for American Equity Investment Life Holding Co.

Brookfield Reinsurance has signed a deal to buy the part of American Equity Investment Life Holding Co. (AEL) that it does not already own in a cash-and-stock transaction that values the company at about US$4.3 billion.

The deal will see AEL shareholders receive US$55 per share, including US$38.85 in cash and 0.49707 of a Brookfield Asset Management Ltd. class A limited voting share.

Brookfield Reinsurance will acquire the Brookfield Asset Management (BAM) shares required to pay the non-cash portion of the offer from Brookfield Corp.

The transaction will reduce Brookfield Corp.’s stake in BAM to about 73% from 75%.

Brookfield, which first proposed its offer last week, already holds about a 20% stake in AEL.

The deal is expected to close in the first half of 2024, subject to AEL shareholder approval and other closing conditions including regulatory approvals.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.