Fidelity & Guaranty Life has terminated its previously announced $1.6 billion merger agreement with Beijing, China-based Anbang Insurance Group, according to an April 17 statement from FGL.
The Company’s Board of Directors is continuing to evaluate strategic alternatives to maximize shareholder value and has received interest from a number of parties, according to the statement. As permitted under the February 9, 2017 amendment to the Merger Agreement, FGL has been exploring and negotiating strategic alternatives with other parties.
Athene Holding Ltd., owner of fixed annuity carrier Athene USA, is now rumored to be a leading candidate to acquire FGL.
Des Moines-based Fidelity & Guaranty Life is an insurance holding company which, through its subsidiaries, offers fixed annuity and life insurance products distributed by independent agents through an established network of independent marketing organizations.
FGL was not permitted to enter into a definitive agreement with a third party while the Merger Agreement was in effect, but as a result of the termination of the Merger Agreement, FGL has no remaining obligations under the Merger Agreement and may enter into an alternative transaction.
“We have determined that it is no longer in the best interests of FGL’s shareholders to continue to pursue the transaction with Anbang,” said Chris Littlefield, President and CEO of FGL. “Our business remains strong, we continue to focus on delivering on our plan for the year and our distribution partners and employees continue to be committed to our success. FGL is an attractive platform and we are well positioned to realize value for our shareholders as our Board continues to evaluate strategic alternatives.”
FGL originally agreed to the deal with Anbang in 2015 at a price of $26.80 per share, but Anbang was unable to win regulatory approval from individual states for the deal. FGL’s stock opened at $27.90 on April 19, and has been trading above the original deal price for several weeks.
There can be no assurance that FGL’s evaluation of strategic alternatives will result in a transaction, or that any transaction, if pursued, will be consummated. FGL’s evaluation of strategic alternatives may be terminated at any time with or without notice. FGL does not intend to disclose developments with respect to this process until such time that it determines otherwise in its sole discretion or as required by applicable law.
About Fidelity & Guaranty Life: Fidelity & Guaranty Life, an insurance holding company, helps middle-income Americans prepare for retirement. Through its subsidiaries, the company offers fixed annuity and life insurance products distributed by independent agents through an established network of independent marketing organizations. Fidelity & Guaranty Life is headquartered in Des Moines, Iowa and trades on the New York Stock Exchange under the ticker symbol FGL. For more information, please visit www.fglife.com.
