What Happened?
Shares of insurance and annuity provider Brighthouse Financial (NASDAQ: BHF) jumped 27.8% in the afternoon session after reports revealed that Aquarian Holdings was in advanced talks to acquire the U.S. life insurer in a take-private deal.
According to a Financial Times report, the potential deal valued Brighthouse at $4 billion, with Aquarian considering a payment of up to $70 per share. The report, which cited people briefed on the matter, also noted that a deal could be announced soon. News of the possible acquisition was backed by the mention that Mubadala Capital, which invested in Aquarian the previous year, was expected to provide equity funding for the transaction.
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What Is The Market Telling Us
Brighthouse Financial’s shares are very volatile and have had 20 moves greater than 5% over the last year. But moves this big are rare even for Brighthouse Financial and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was about 1 month ago when the stock gained 30% on the news that reports emerged that the company was in advanced talks to be acquired by a consortium led by Aquarian Holdings at a significant premium. The potential deal, reported by multiple news outlets, involved an offer price between $65 and $70 per share. This price tag represented a hefty jump over the stock's previous closing price of around $45. The suitor, Aquarian Holdings, a firm focused on insurance and asset management, was reportedly backed by major investors, including RedBird Capital Partners and the Abu Dhabi state fund Mubadala. While sources indicated the talks were advanced, they also cautioned that a final agreement was not yet guaranteed. The market reacted with strong optimism to the possibility of a buyout, sending shares soaring as investors priced in the potential acquisition.
Brighthouse Financial is up 21.9% since the beginning of the year, and at $58.51 per share, it is trading close to its 52-week high of $62.97 from February 2025. Investors who bought $1,000 worth of Brighthouse Financial’s shares 5 years ago would now be looking at an investment worth $1,796.
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