Willkie, Skadden Guide on American Equity Deal with Brookfield

Willkie Farr & Gallagher said it advised Brookfield Asset Management on its recent partnership deal with American Equity Investment Life Holding Company, under which Brookfield will reinsure up to $10 Billion of American Equity annuity liabilities.

American Equity, based in Des Moines, Iowa, got advice from Skadden Arps on the deal.

Brookfield is slated to acquire a 19.9% ownership interest in American Equity common shares at $37 a share, and take a seat on American Equity’s board.

In its deal statement, American Equity formally rejected an unsolicited $36-a-share takeover proposal that Athene and MassMutual announced Oct. 1, calling it “not in the best interests of of American Equity and its shareholders and other stakeholders.” John M. Matovina, chairman of American Equity’s Board, called the deal with Brookfield, “the right course of action for maximizing long-term value for our shareholders and other stakeholders.”

Brookfield’s chief investment officer, Sachin Shah, said American Equity is growing as a reinsurance and retirement planning annuity provider.

“This transaction represents a meaningful investment for us in the attractive U.S. insurance market and we believe our alternative asset strategies can deliver long-term value to the company,” Shah added.