Anbang Insurance To Acquire Fidelity & Guaranty Life For $26.80 Per Share

(RTTNews) - Anbang Insurance Group Co., Ltd., a comprehensive insurance group based in Beijing, China, and Fidelity & Guaranty Life (FGL), a provider of annuities and life insurance in the U.S., have entered into a definitive merger agreement for Anbang to acquire FGL for $26.80 per share.

The transaction will make Anbang one of the largest insurers by market share in fixed indexed annuity products in the U.S. The transaction is expected to close in the second quarter of 2016.

FGL's solid life and fixed indexed annuity platforms will enhance the growth of Anbang's business while accelerating FGL's ability to further extend its policyholder base.

Anbang will acquire all outstanding shares of Fidelity & Guaranty Life. Stockholders of FGL will receive $26.80 per share in cash at closing.

The transaction represents a 28.9 percent premium over $20.79 per share, FGL's unaffected closing stock price before the public announcement of the strategic review process on April 6.