Shares of Athene Holding Ltd. (ATH) soared 15.6% into record territory in premarket trading Monday, after the retirement services company announced a deal in which it will be acquired by investment manager Apollo Global Management Inc. (APO) in a deal valuing Athene at about $11 billion. Apollo shares jumped 5.4%. Under terms of the deal, 1.149 shares of Apollo will be exchanged for each Athene share outstanding. Based on Friday's closing prices, that values Athene shares at about $56.94 each, a 16.5% premium. The deal is expected to close in January 2022. Separately, Apollo said it will move to a single share class. "The key benefits of the merger will be derived from increased coordination and alignment, not consolidation," the companies said in a statement. "The merger is not predicated on synergies of personnel or cost savings, and the combined company expects to grow its workforce commensurate with growth of the business." Athene's stock, which is on track to open above the Oct. 10, 2017 record close of $55.02, has rallied 12.0% over the past three months through Friday, while Apollo shares have gained 2.6% and the S&P 500 has tacked on 3.8% over the same time.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
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