National Western Life Group shares experienced a significant boost, rising 15% to reach $477.70, which is its 52-week high. The surge in stock price follows the announcement of the company’s acquisition by S. USA Life Insurance, an affiliate of Prosperity Life Group, in an all-cash deal valued at $1.9 billion.
Over the past 12 months, the stock has witnessed an impressive 174% increase.
As part of the merger, each issued and outstanding share of National Western common stock will be converted into the right to receive a generous sum of $500 in cash upon the closing of the deal.
The merger consideration of $500 per share for both National Western’s class A and class B shares represents a remarkable 87.1% premium compared to the unaffected class A share price of $267.29 as of May 16. Additionally, it presents an 11.8% premium over National Western’s 30-day volume-weighted average price as of October 6.
Anticipated to conclude in the first half of 2024, this deal is expected to bring immediate and substantial value to National Western’s stockholders. Ross Moody, chief executive of National Western, expressed his confidence in the transaction, stating, “The transaction provides clear and immediate value for our stockholders at an attractive premium.”