FBL Financial Group, Inc. (NYSE:FFG)
announced today the final results of its modified “Dutch auction” tender offer, which expired on March 27, 2012.
FBL Financial Group has accepted for purchase 2,554,683 shares of its Class A Common Stock (the “Shares”) at a price of $35.00 per Share for a total cost of $89,413,905, excluding fees and expenses relating to the tender offer.
The depositary will promptly pay for the Shares accepted for purchase pursuant to the terms of the tender offer.
On February 26, 2012, FBL Financial Group entered into a repurchase agreement with Iowa Farm Bureau Federation (“IFBF”), pursuant to which FBL Financial Group agreed to purchase up to an aggregate of 1,000,000 Shares from IFBF for a total purchase price of up to $35.0 million. Assuming the conditions to the private repurchase are satisfied, FBL expects to purchase 638,671 Shares at a price of $35.00 per Share for a total cost of $22,353,485, excluding fees and expenses relating to the private repurchase. The private repurchase is expected to occur on April 11, 2012, the eleventh business day following the expiration date of the tender offer.
The aggregate purchase price for the Shares repurchased in the tender offer and those repurchased from IFBF will total $111,767,390, and the aggregate number of Shares repurchased in the tender offer and those repurchased from IFBF will total 3,193,354, which is approximately 10.8% of the Shares outstanding prior to the completion of the tender offer and the private repurchase. Upon completion of the tender offer and the private repurchase, FBL Financial Group will have approximately 26.5 million Shares outstanding. FBL Financial Group funded the purchase of the Shares in the tender offer and the private repurchase using cash on hand.
The tender offer and the private repurchase are a part of FBL Financial Group’s $200 million stock repurchase authorization announced on October 7, 2011, and following such transactions, FBL Financial Group will have completed the repurchase of $125.5 million of Shares. FBL Financial Group may in the future consider various forms of share repurchases, including open market purchases, tender offers and/or accelerated share repurchases or otherwise. Under applicable securities laws, FBL Financial Group may not repurchase any Shares until after April 10, 2012.