Source: Sharecafe
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  • NYSE-listed Athene Holding agrees to purchase a minority investment in Challenger (CGF)
  • The company and its partner Apollo Global have agreed to purchase a 15 per cent interest, bringing its total stake to 18 per cent
  • Athene CEO Jim Belardi says the company has been looking at the Australian market given the current economic conditions and compelling demographic fundamentals
  • On the market, Challenger is up 10.4 per cent and is trading at $6.04 per share

Athene Holding has agreed to purchase a minority investment in Challenger (CGF).

The New York Stock Exchange lister and its partner Apollo Global Management have agreed to buy a 15 per cent stake in Challenger from an existing shareholder.

This will boost their equity to 18 per cent for $720 million.

Athene, through its subsidiaries, is a leading retirement services company, while Apollo is a global alternative asset manager.

Notably, Athene and Apollo are aiming to merge and become a leading global solutions providers focussed on delivering superior investment returns and retirement income.

Athene CEO Jim Belardi said investing in Challenger represents is a great opportunity to support a well-established platform in the Australian market.

“In many ways, Challenger is the perfect partner for us – the company is led by an experienced management team, has a strong market position, attractive growth prospects, and shares our deep commitment to retirees,” Mr Belardi said.

Challenger’s Managing Director and CEO, Richard Howes, was pleased with the investment.

“Today’s announcement by Athene is a strong endorsement of Challenger’s market position and long-term growth prospects from a leading international retirement services provider,” Mr Howes said.

“We look forward to working with Athene and Apollo as we continue to pursue our shared purpose of providing customers financial security for a better retirement.”

On the market, Challenger is up 10.4 per cent and is trading at $6.04 per share at 11:40 am AEST.

CGF by the numbers
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