(By Balaseshan) Insurer Presidential Life Corp. (NASDAQ:PLFE) stock touched a new yearly high after it agreed to be acquired by a subsidiary of Athene Holding Ltd. for about $415 million in cash.
Athene Annuity & Life Assurance Co. would pay $14.00 per share in cash for each Presidential Life common stock, representing a 38% premium to Thursday's stock closing price.
Athene CEO James Belardi said the purchase of Presidential Life will create significant opportunities for growth in Athene's retail sales and reinsurance operations. The purchase also expands its presence as Athene Annuity does not currently operate in New York.
Presidential Life, which sells a variety of fixed annuity, life insurance and accident and health insurance, said its board unanimously approved and recommended shareholders approve the transaction, which is expected to close late 2012.
Athene Annuity and Eagle Acquisition Corp., a newly formed subsidiary of Athene Annuity, will merge with and into the Nyack, New York-based Presidential Life, with Presidential Life surviving the merger as a subsidiary of Athene Annuity.
Athene's founders are James Belardi, CEO of Athene Holding Ltd. and Athene Annuity, and Chip Gillis, CEO of Athene Life Re and its majority shareholder is an affiliate of Apollo Global Management LLC (NYSE:APO).
Sandler O'Neill + Partners, L.P. acted 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 LLP acted as counsel to Presidential Life. Sidley Austin LLP acted as counsel to Athene.
PLFE is trading 37.08% higher at $13.90 on Friday. The stock has been trading between $7.27 and $13.94 for the past 52 weeks.