FGL scraps $1.6bn merger agreement with Anbang Insurance
American annuities and life insurer Fidelity & Guaranty Life (FGL) has terminated its $1.6bn agreement with Chinese-based Anbang Insurance.
FGL stated that its board of directors will continue to assess strategic alternatives intended to maximize value for shareholders.
It has also revealed to have received interest from various parties regarding its acquisition.
Bound by the February 9, 2017 amendment to the merger agreement with Anbang Insurance, FGL was not permitted to sign a definitive agreement with a third party though it has been looking out for and working on strategic alternatives.
However, with the termination of the agreement with Anbang Insurance, FGL stated that it is no longer obligated and can enter into an alternative transaction with another party.
FGL president and CEO Chris Littlefield said: "We have determined that it is no longer in the best interests of FGL's shareholders to continue to pursue the transaction with Anbang.
"Our business remains strong, we continue to focus on delivering on our plan for the year and our distribution partners and employees continue to be committed to our success. FGL is an attractive platform and we are well positioned to realize value for our shareholders as our Board continues to evaluate strategic alternatives."
FGL has also stated that it gives no guarantee that its assessment of strategic alternatives will culminate in a transaction, or even if it is pursued, there was no assurance of it being consummated.
Further its evaluation of alternative transactions may be cancelled whenever it wants without giving out any notifications. FGL added that it intends not to reveal developments in this regard until it thinks otherwise in its sole discretion or as obligated by applicable law.
In June last year, Anbang Insurance Group had taken back its application to acquire FGL after failing to furnish required details that were asked by the New York state's financial services regulator to move the deal forward, reported Reuters.
Image: FGL terminated its merger agreement with Anbang Insurance. Photo: courtesy of David Castillo Dominici/ FreeDigitalPhotos.net.