Private-equity giant Apollo Global Management Inc. announced a merger Monday to acquire the portion of Athene Holding Ltd. it doesn’t already own in an all-stock transaction that values the insurance-and-retirement services firm at around $11 billion.
Apollo shareholders will own about 76% of the combined entity. The deal would broaden Athene’s distribution channels, the companies said. Apollo, with certain related parties and employees, currently owns about 35% of outstanding Athene Class A common shares.
Each outstanding Class A share of Athene will be exchanged for a fixed ratio of 1.149 shares of Apollo, the companies said, reflecting a roughly 16.5% premium over Athene’s closing price on Friday.
Athene shares, which rose about 21% in premarket trading Monday, closed at $48.88 Friday. Apollo shares, which rose about 8% in premarket trading, closed at $49.56 Friday.
The deal would more than double Apollo’s reported earnings in 2020, the companies said. After the deal is expected to close in January 2022, shareholders will get a $1.60 annual dividend, with increases based on growth of the business, the companies said.