Brookfield Reinsurance is to acquire Argo Group International Holdings (Argo) in a transaction valued at approximately US $1.1 billion.
The merger is expected to close in the second half of 2023, subject to approval by Argo shareholders.
As part of the agreement, each issued and outstanding Argo common share will be converted into the right to receive US$30 in cash at closing of the merger, funded by existing cash on hand and liquidity available to Brookfield Reinsurance.
The merger consideration per Argo common share represents a 6.7 per cent premium to Argo’s closing share price on 7 February 2023.
Under the terms of the merger agreement, Argo has agreed to suspend the payment of dividends on its common shares through the closing of the transaction.
Commenting on the mandate, Sachin Shah, CEO of Brookfield Reinsurance, says: “The acquisition of Argo represents another milestone in the continued expansion of our insurance solutions business.
“Argo’s leading US specialty platform adds a foundational piece to our expanding US property and casualty operations. We look forward to partnering with the Argo team to support the growth of its core businesses, build on its strong franchise, and deliver value for policyholders.”
Thomas A. Bradley, executive chairman and CEO of Argo, comments: “This transaction brings a successful conclusion to Argo’s strategic alternatives review process and represents the best path forward for Argo, our employees and policyholders while also maximising value for our shareholders.
“By joining Brookfield Reinsurance, Argo will continue to serve our brokers with greater financial strength and opportunities to grow as a US-focused specialty insurer.”
