What You Need to Know
- Apollo already had a close relationship with Athene.
- Athene is reinsuring $27 billion in Jackson liabilities.
- Apollo says Athene would keep its current management.
Apollo Global Management Inc. is moving to gain full control over Athene Holding Ltd., a large life insurer.
The companies announced Monday that they have agreed to merge by swapping stock, through a transaction that implies a $11 billion total value for Athene. The combined company would have a market capitalization, or total stock value, of $29 billion. The companies hope to complete the deal in January 2022.
Under the agreement, Apollo shareholders would end up owning 76% of the combined company, and Marc Rowan, Apollo’s incoming CEO, would be the leader of the combined company, according to Apollo.
A special committee of “certain disinterested members” of the Athene board and the conflicts committee of the Apollo board have approved the merger unanimously. The Apollo and Athene boards have also approved the merger, Apollo said.
The Apollo representatives on the Athene board recused themselves from discussions about the merger, Apollo said.
About Apollo and Athene
Apollo is a New York-based investment company that already has 45% of the voting power of Athene’s stock, and big investments in many other companies.
Just this week, Apollo announced plans to acquire the The Michaels Cos. arts and crafts store chain and The Venetian Resort and Sands Expo and Convention Center in Las Vegas.
Athene is the Hamilton, Bermuda-based company that worked with Venerable to acquire a $19 billion block of fixed and indexed annuities from Voya Financial through a reinsurance arrangement in June 2018, and a $27 billion block of traditional fixed annuity and indexed annuity liabilities from Jackson, the U.S. arm of Prudential PLC of London, in June 2020.