June 16, 2024

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Apollo Global to buy annuities provider Athene in $11-bn deal

Apollo World wide said on Monday it would purchase Athene Holding in an all-inventory offer valuing the annuities supplier at about $eleven billion, generating it the private equity firm’s first key offer right after co-founder Leon Black stepped down as CEO.

The offer will produce a corporation with a professional-forma current market price of $29 billion, providing products and solutions and expert services in the expenditure and retirement profits space.

The merged corporation will be led by incoming Apollo Main Government Officer Marc Rowan. The offer is envisioned to close in January 2022.

Rowan, who co-started Apollo 31 decades ago, has been tasked with functioning the corporation right after Leon Black said in January he would action down as main govt, next an unbiased assessment of his ties to the late financier and convicted sex offender Jeffrey Epstein.

Black carries on to be Apollo’s chairman.

Underneath the terms of the offer, every outstanding course A common share of Athene will be exchanged for 1.149 shares of Apollo common inventory, representing a high quality of about 16.five% to Athene’s closing share rate on Friday.

The company’s shares had been up virtually 19% in premarket trade, though Apollo was up 4.seven%.

Present Apollo shareholders will have about seventy six% of the merged corporation, and Athene traders will have the relaxation. Apollo is currently Athene’s biggest shareholder with an virtually 29% stake, according to Refinitiv info.

Apollo also said that the conflicts committee of its board has approved improvements that would end result in a easier, far more clear company structure that is envisioned to be put in position by January 2022.

The corporation experienced entered into a binding governance term sheet with Black, Rowan and co-founder Josh Harris to make improvements to its governance structure and a timeline for their implementation.

Underneath the terms, Apollo’s board of directors will be improved to fifteen members, with three more new unbiased directors appointed.

The private equity firm said previous month it would glance into modifying its company governance structure, finding rid of shares with specific voting rights that presently give Black and other co-founders successful handle of the firm.

Established in 2009, Athene also serves as Apollo’s partner insurance policies corporation and experienced total property worth $202.8 billion at the stop of 2020, with functions in the United States, Bermuda, and Canada.

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