Nationwide Financial Services Inc. has given shareholders more information about plans by Nationwide Mutual Insurance Company to acquire full control over the company.
Nationwide Mutual, Columbus, Ohio, which announced plans March 7 to acquire the Class A common stock of Nationwide Financial that it does not already own, now has executed a definitive acquisition agreement with Nationwide Financial, Nationwide Financial says.
The agreement calls for Nationwide Mutual to pay about $52.25 per share in cash, a price 38% above the March 7 closing price, giving the deal a total value of about $2.4 billion.
Nationwide Financial stock is now selling for about $50 per share.
Nationwide Mutual says it hopes to complete the deal by early 2009.
Nationwide Mutual and some of its affiliates have agreed to vote all of their Nationwide Financial shares in favor of the transaction, Nationwide Mutual says.
“Combining the organizations will allow the Nationwide brand to set itself apart from the competition by aligning our entire product and service portfolio around the customer,” Nationwide Mutual Chief Executive Jerry Jurgensen says in a statement.