On Monday, Kaskela Law LLC announced an investigation into the fairness of the proposed buyout of American Equity Investment Life (NYSE:AEL) Holding Company (NYSE: AEL) by Brookfield Reinsurance. The law firm seeks to determine whether the transaction is equitable for AEL's investors, including if shareholders will receive sufficient consideration for their shares.
The proposed acquisition was initially announced on July 5, 2023, when AEL agreed to be bought by Brookfield for $55.00 per AEL share. This price comprises $38.85 in cash and 0.49707 of a Brookfield Asset Management Ltd. share. After the transaction's closure, AEL investors will be cashed out, and the company's shares will cease to be publicly traded.
The investigation by Kaskela Law also aims to ascertain if AEL's directors breached their fiduciary duties or contravened securities laws by agreeing to sell the company to Brookfield at the stated price per share.
According to InvestingPro data, AEL's market capitalization stands at 4210M USD, and the company has seen a significant price uptick over the last six months with a 47.0 % increase. However, a negative P/E ratio of -67.83, indicates that the company has not been profitable over the last twelve months. This is also supported by one of the InvestingPro Tips, stating that the company was not profitable over the last twelve months.
Moreover, AEL has a strong track record of dividend payments, having maintained them for 20 consecutive years and even raised them every year for the same duration, as per InvestingPro Tips. The data shows a dividend yield of 0.67 % and a dividend growth of 5.88 %, despite the company's lack of profitability.
AEL shareholders have been advised to contact Kaskela Law LLC for additional information about this investigation and their legal rights and options. The law firm specializes in representing investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis.
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