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Laxman Pai, Opalesque Asia: Private equity firm Apollo Global Management agreed to purchase an 18% stake in Athene Holding Ltd. in a deal valued at about $1.55 billion.
Under the terms of the deal, Apollo will acquire about 35.5 million common shares of Athene, boosting its stake in the company to about 35%.
Athene will also purchase a 7% equity stake in Apollo. The two firms are using a stock swap for the deal. Athene shares had the biggest gain since August 2018.
Athene, which issues, buys and reinsures retirement savings account products for individuals and companies, has been a source of lucrative fees for Apollo, which manages its assets and invests them alongside its credit and buyout portfolio.
Jim Belardi, Chairman and Chief Executive Officer of Athene, said, "Today's announcement reflects the strength and strategic nature of our longstanding relationship with Apollo. After carefully reviewing Athene's options to unlock value for shareholders, Athene and Apollo determined it is prudent to eliminate Athene's multi-class share structure and make other enhancements to the companies' mutually beneficial relationship."
"This transaction will remove a material impediment to additional index inclusion and strengthen our corporate governance profile by aligning voting rights with the economic interests of all shareholders. We believe the combination of these factors will greatly enhance Athene's appeal to a much broader group of active and passive...................... To view our full article Click here
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