American Equity Investment Life Holding Company (NYSE:AEL) has received a buy out offer from Brookfield Reinsurance Ltd. (NYSE:BNRE) that values its business at about USD 4.28 billion (EUR 3.90 billion) in total equity terms. Brookfield is offering to buy the shares not already owned for USD 55.00 apiece in cash and stock, comprising USD 38.85 in cash plus USD 16.15 per share in class A limited voting shares of Brookfield Asset Management Ltd. The proposed terms of the non-binding expression of interest are based on the unaffected 90-day VWAP as of June 23, 2023. The offer represents a 35% premium to American Equity’s closing price on June 23, 2023, the last trading day prior to media speculation about Brookfield’s interest. Shares in the West Des Moines, Iowa-based target company closed 17.21% higher at USD 52.86 in New York on June 27, 2023.

The suitor owns a stake of about 20%, according to a recent securities filing. It noted in the statement that it is prepared and intends to negotiate in good faith the terms of a definitive agreement on a transaction by June 30, 2023. The target company in a separate statement said its board will carefully review the proposal with its independent financial and legal advisors.