Equitable Holdings finalizes significant investment in AllianceBernstein, enhancing strategic growth and market influence.
Equitable Holdings Inc. (NYSE: EQH) has successfully finalized its extensive tender offer, investing approximately $761 million to acquire 19.8 million units of AllianceBernstein L.P. This strategic acquisition elevates Equitable’s ownership in the asset management firm to around 68.6%.
The purchased units account for approximately 17.9% of AllianceBernstein’s outstanding units as of December 31, 2024. The definitive count of acquired units will be validated after the guaranteed delivery period and completion of processing by the depositary.
Equitable has stated, “The final number of units to be purchased will be announced following the expiration of the guaranteed delivery period and completion by the depositary and paying agent of its confirmation process.” Payment will be promptly processed upon final verification.
Initially, Equitable launched a cash tender offer to acquire up to 46 million units for a potential total of $1.8 billion, offering a price of up to $38.50 per unit, net of taxes. The offer period was extended from March 24 to April 1 to encourage greater participation from unit holders.
This acquisition solidifies Equitable’s influence over AllianceBernstein, a pivotal element of its investment management operations. AllianceBernstein Holding L.P. represents the interests in the operating partnership managed by Equitable.
Currently, Equitable Holdings’ underwriting entities maintain a Best’s Financial Strength Rating of A (Excellent), underscoring the company’s resilience amid this transaction.
On April 2, shares of Equitable Holdings were traded at $54.49, reflecting a 4.21% increase from the previous close. Concurrently, units of AllianceBernstein Holding L.P. rose by 2.55% to $39.45 during the same trading session.
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