A definitive merger agreement between Midwest Holding Inc. and the investment company Antarctica Capital provides that Midwest will be acquired by an affiliate of Antarctica in an all-cash deal valued at about $100 million.
According to Midwest, under the terms of the deal, its shareholders will receive $27.00 in cash per share, which is a premium of 75% over Midwest’s 30-day volume-weighted average price as of April 28, 2023, and a premium of 97% over the Company’s closing share price on that day.
The acquisition has received unanimous board approval from Midwest and is anticipated to close in the second half of 2023, subject to the fulfillment of certain normal closing requirements, such as receipt of insurance regulatory approvals and shareholder approval.
According to Midwest, shareholders who own about 33% of the issued and existing shares of the company have consented to vote their shares in favor of the deal.
This transaction delivers a substantial cash premium to our shareholders while also providing Midwest with the resources necessary to fully capitalize on our platform, business momentum, and market opportunity,” said Georgette Nicholas, Midwest’s CEO.
The Board of Directors and management team reviewed all available alternatives for value generation, and we are satisfied that this deal offers Midwest a very favorable outcome. We are eager to collaborate with the Antarctica team on this fascinating new project.
Midwest is an innovative insurance platform with an impressive team that has built a rapidly expanding annuity business,” said Chandra Patel, managing partner of Antarctica Capital.
The purchase of Midwest marks a key turning point in Antarctica’s insurance program. Midwest will be able to increase the value it offers to its policyholders because to Antarctica’s investment management knowledge and asset sourcing skills.
In order to expedite Midwest’s “capital light strategy” and foster future growth, we also intend to make use of our platform and current alliances. Midwest will be a welcome addition to the Antarctica family of businesses, we hope.
Midwest will continue to be run by its present leadership group after the acquisition is completed. Additionally, Midwest is anticipated to keep its current name, staff, corporate office in Lincoln, Nebraska, and operational hubs in New York and Vermont.
