(Repeats to widen distribution. The story was earlier corrected to say "in $4.3 bln deal," not "for $4.3 bln", in headline)
July 5 (Reuters) - Brookfield's reinsurance arm will buy American Equity Investment Life Holding in a deal worth about $4.3 billion as the Canadian investment firm ramps up its insurance business, the companies said on Wednesday.
The cash-and-stock deal valued at $55 per share was initially proposed by Brookfield in late June, the firms said in a statement. It represents a 35% premium to AEL's last close on the New York Stock Exchange before media reports of a possible takeover proposal from Brookfield emerged last week.
AEL shares touched a record-high of $53.68 when the bid was announced on June 27 and have been trading around the same levels since then.
Brookfield and AEL said the deal consists of $38.85 in cash and the rest in Brookfield Asset Management's shares.
"Given the complementary nature of AEL's leading fixed annuity business to our existing platform, we expect to accelerate growth," said Jon Bayer, managing partner at Brookfield Reinsurance.
AEL, which provides annuities - an insurance contract that customers typically buy for a steady income stream after retiring - will go private once the deal closes in the first half of next year.
Shares were up 2.4% in light premarket trading on Wednesday.
The deal comes months after AEL snubbed a bid worth about $4 billion from Elliott Investment Management-backed insurance firm Prosperity Life, saying it "significantly undervalued" the company.
AEL had also fielded takeover interest from Athene Holding and Massachusetts Mutual Life Insurance Company in 2020. (Reporting by Manya Saini in Bengaluru; Editing by Nivedita Bhattacharjee)