Canada’s Brookfield confirms $4.3bn acquisition of AEL

Canadian investment firm Brookfield Reinsurance approved on Wednesday to take the remaining stake in American Equity Investment Life Holding (AEL) that it did not already own for $4.3 billion.

The companies indicated the agreement would pay AEL investors $55 per share, a 6.3 percent premium to the stock’s closing price on Monday. Shareholders are to receive $38.85 in cash and 0.49707 Brookfield Asset Management Ltd (BAM).

Brookfield Reinsurance first proposed taking full ownership of AEL in June 2023 in a letter to the latter’s board of directors, which suggested an aggregate consideration of $55.00 per AEL share.

“The transaction represents an opportunity for AEL shareholders, through the BAM Shares, to remain invested in a market leading global alternative asset manager,” Anant Bhalla, President and Chief Executive Officer (CEO) of AEL, said.