Brookfield Reinsurance has signed a deal to buy the part of American Equity Investment Life Holding Co. (AEL) that it does not already own in a cash-and-stock transaction that values the company at about US$4.3 billion.

The deal will see AEL shareholders receive US$55 per share, including US$38.85 in cash and 0.49707 of a Brookfield Asset Management Ltd. class A limited voting share.

Brookfield Reinsurance will acquire the Brookfield Asset Management (BAM) shares required to pay the non-cash portion of the offer from Brookfield Corp. 

The transaction will reduce Brookfield Corp.'s stake in BAM to about 73 per cent from 75 per cent. 

Brookfield, which first proposed its offer last week, already holds about a 20 per cent stake in AEL. 

The deal is expected to close in the first half of 2024, subject to AEL shareholder approval and other closing conditions including regulatory approvals.

This report by The Canadian Press was first published July 5, 2023.