Presidential Life and Athene have inked a definitive agreement for an Athene subsidiary to acquire Presidential Life for $14 per share in cash, in lieu of an aggregate purchase price of nearly $415m.
In pursuant of the terms of the merger deal, the $14 per share price represents a premium of almost 38% over the $10.14 per share closing price of Presidential Life common stock on 12 July 2012.
Under the terms of the agreement, Athene Annuity and Eagle Acquisition (Merger Sub) will merge with and into Presidential Life, while Presidential Life will act as a wholly owned subsidiary of Athene Annuity after merger.
The deal has been already backed by the directors of Presidential Life and is anticipated to complete by the end of December of 2012, after receiving clearance from regulatory agencies including the New York State Department of Financial Services and SEC.
Athene CEO James Belardi said the firm will continue to build a market-leading retirement savings company through organic growth, reinsurance and strategic acquisitions.
"The purchase of Presidential Life will create significant opportunities for growth in our retail sales and reinsurance operations." Athene Annuity does not currently operate in New York," Belardi added.
Sandler O'Neill + Partners, served as the financial advisor to Presidential Life and provided a fairness opinion to the Board of Directors of Presidential Life in connection with the transaction. Proskauer Rose acted as counsel to Presidential Life, while Sidley Austin acted as counsel to Athene.
Presidential Life, through its wholly owned subsidiary, Presidential Life Insurance, markets a variety of fixed annuity, life insurance and accident and health insurance products.
