Phoenix Shareholders Give OK to $217.2 Million Acquisition by Nassau Re
December 22, 2015 by Dennis Gorski, managing editor-online, BestWeek: Dennis.Gorski@ambest.com
HARTFORD, Conn. – Shareholders of life and annuity writer Phoenix Companies Inc. gave their approval to a $217.2 million acquisition bid by New York-based Nassau Reinsurance Group Holdings LP.
About 58%, or 3.35 million of outstanding company shares voted, and 98% of the vote was for approval, according to an email to Best’s News Service from Alice Ericson, second vice president of corporate communications for Phoenix.
Phoenix stockholders will received a cash payment of $37.50 for each share owned prior to Sept. 28, when the deal was disclosed. The purchase price represents a 188% premium over Phoenix’s closing stock price of $13.03 on Sept. 28, the statement said.
Phoenix will become Nassau’s U.S. life and annuity platform after the closing. Nassau will contribute an additional $100 million in equity capital to Phoenix upon closing to further stabilize and improve Phoenix’s balance sheet as well as provide growth capital, the statement said.
After the transaction closes, Phoenix will be a privately held, wholly owned subsidiary of Nassau. Phoenix’s corporate headquarters will remain in Hartford, Connecticut, according to the statement.
Nassau Reinsurance Group was founded in 2015 by former executives of HRG Group and Fidelity & Guaranty Life with an equity seed capital commitment of $750 million, according to its website. Its mission is to acquire and operate onshore and offshore platforms with long-tail liabilities focused on the life, annuity and long-term care sectors.
The operating insurance units of Phoenix Life Group have a current Best’s Financial Strength Rating of B (Fair).
In late morning trading, shares of Phoenix Cos. were $36.40, down 0.33% from their previous close.