(RTTNews) - Brookfield Reinsurance (BNRE) and Argo Group International Holdings, Ltd. (ARGO) Wednesday announced a definitive merger agreement whereby Brookfield Reinsurance will acquire Argo in an all-cash transaction valued at approximately $1.1 billion.
Each Argo common share will be converted into the right to receive $30.00 in cash at the closing of the merger. The merger is expected to close in the second half of 2023.
The merger consideration per Argo share represents a 6.7 percent premium to Argo's closing share price on February 7, 2023, and a 48.7 percent premium over Argo's closing share price on September 7, 2022.
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.
The transaction is not subject to any financing condition or contingency. The merger will be funded by existing cash on hand and liquidity available to Brookfield Reinsurance.
Thomas A. Bradley, Argo's Executive Chairman and Chief Executive Officer, said, "This transaction brings a successful conclusion to Argo's strategic alternatives review process and represents the best path forward for Argo."
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