National Western sale secures all approvals
National Western sale secures all approvals | Insurance Business America
Life & Health
National Western sale secures all approvals
Deal expected to close no later than July 11
Life & Health
By
Terry Gangcuangco
National Western Life Group has secured all necessary regulatory approvals for its sale to SUSA (S. USA Life Insurance Company), an affiliate of Prosperity Life Group.
With full go-ahead in place, the all-cash merger is now poised to be completed no later than July 11. As announced last October, SUSA is acquiring National Western in a transaction valued at approximately $1.9 billion.
“Each issued and outstanding share of National Western common stock will be converted into the right to receive $500 in cash at closing of the merger,” the two camps noted when the deal was first unveiled.
“The merger consideration of $500 per share of National Western’s Class A common stock and Class B common stock represents an 87.1% premium to the unaffected Class A common stock share price of $267.29 on May 16, 2023, as well as an 11.8% premium over National Western’s 30-day volume-weighted average price as of October 6, 2023.”
Ahead of completion, the sale was approved by National Western’s board and by the holders of a majority of the company’s outstanding shares.
“This is an exciting moment in National Western’s history,” board chair and chief executive Ross R. Moody previously said.
“I would like to thank our board of directors, particularly our strategic opportunities committee of independent directors, which conducted a thorough review of a range of strategic alternatives and possible business opportunities to maximize value for our stockholders. The transaction provides clear and immediate value for our stockholders at an attractive premium.”
At the time, Prosperity Life Group and CEO Nicholas von Moltke highlighted: “The acquisition of National Western represents a significant milestone in the continued expansion of our insurance business.
“We look forward to welcoming National Western to Prosperity Life Group. National Western’s capabilities will further complement our ambition to deliver a compelling value proposition to our policyholders and the company.”
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