Baker & McKenzie and Debevoise & Plimpton have scored lead advisory roles on Japan’s Dai-ichi Life Insurance Co’s agreement to buy American insurer Protective Life for $5.7 billion in what is the largest ever acquisition by a Japanese insurer.
Under terms of the deal, Dai-ichi Life will pay $70 per share to buy 100 percent of Protective Life, a 35 percent premium to Protective’s average share price in the past month.
Ranked 36th among U.S. insurers by premium income, Protective Life will provide Dai-ichi Life with a growth platform in North America, the Japanese company said in a statement.
Baker & McKenzie is advising Dai-ichi Life on the deal, led by Tokyo partner Jiro Toyokawa and Chicago partner Craig Roeder. New York-headquartered law firm Willkie, Farr & Gallagher is advising the Japanese insurer on U.S. regulations.
Debevoise & Plimpton is representing Protective Life.
Dai-ichi Life, Japan’s second-largest private sector life insurer, said it will issue up to 250 billion yen ($2.4 billion) in new shares to help finance the expected purchase of Protective Life. The Japanese insurer will retain existing management at the Alabama-based target, which booked premiums and policy fees of $2.98 billion and net income of $393 million in 2013.
Dai-ichi Life said it expects the deal to close sometime between December 2014 and January 2015, pending approval by the target's shareholders and regulators.
