By Lisa Kerner
Charlotte, N.C., Feb. 22 - American Financial Group, Inc. announced it plans to buy the shares of subsidiary Great American Financial Resources, Inc. that it does not already own. It currently has an 81% stake.
The proposal calls for Great American Financial to acquire outstanding shares for $23.50 per share cash in a transaction valued at roughly $215 million.
To fund the transaction, slated to close in the third quarter of 2007, Great American Financial will use excess capital plus borrowings from American Financial, according to a company news release.
"We believe this transaction is beneficial to American Financial Group and its shareholders while being fair to Great American Financial Resources minority shareholders," American Financial's co-chief executive officers Craig Lindner and Carl Lindner III said in the release.
"It allows us to use our excess capital to increase our ownership of a specialty-focused business that supports our strategic initiatives. It simplifies the AFG organization and results in immediate expense savings through the elimination of a public company and allows for other synergies that will provide efficiencies over time."
American Financial, through Great American Insurance Group, is a Cincinnati, Ohio, property and casualty insurance company.
| Acquirer: | American Financial Group, Inc.
|
| Target: | Great American Financial Resources, Inc.
|
| Transaction value: | $215 million
|
| Payment per share: | $23.50
|
| Announcement date: | Feb. 22
|
| Expected closing: | Third quarter of 2007
|
| Stock price for acquirer: | Nasdaq: AFG: $36.36 on Feb. 21
|
| Stock price for target: | NYSE: GFR: $21.69 on Feb. 21
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
