Equitable Holdings Announces Final Results of Cash Tender Offer for Units of AllianceBernstein Holding

Rhea-AI Summary

Equitable Holdings (NYSE: EQH) has completed its cash tender offer for AllianceBernstein Holding (NYSE: AB) units. The company accepted 19,682,946 units at $38.50 per unit, representing approximately 17.8% of outstanding Units as of December 31, 2024. The total cost of the purchase was approximately $757.8 million, excluding fees and expenses.

The tender offer, which expired on April 1, 2025, initially targeted up to 46,000,000 units for an aggregate purchase price of up to $1.8 billion. Following this transaction, Equitable will increase its economic interest in AllianceBernstein L.P. to approximately 68.6%.

Positive

• Increased ownership stake in AllianceBernstein to 68.6%, strengthening control over the asset management business
• Successfully completed tender offer with $757.8M strategic investment
• Tender offer was executed at a fixed price of $38.50 per unit, providing price certainty

Negative

• Actual tender participation (19.7M units) was significantly below the maximum target of 46M units
• Large cash expenditure of $757.8M impacts company's liquidity

Insights

Financial Analyst

Equitable Holdings' completed tender offer for AllianceBernstein units represents a $757.8 million capital allocation decision that significantly increases EQH's economic ownership in its subsidiary. While the company initially targeted up to $1.8 billion for 46 million units, the actual uptake of 19.7 million units (42.8% of maximum) still enabled EQH to increase its economic interest in AllianceBernstein L.P. to 68.6%.

This transaction demonstrates EQH's strategic commitment to consolidating control over AllianceBernstein while maintaining financial discipline. The $38.50 per unit tender price represents a calculated valuation decision that avoided overpaying while still attracting sufficient participation. With this increased ownership stake, Equitable gains enhanced economic exposure to AB's asset management earnings stream and strengthens its organizational alignment.

The 17.8% reduction in outstanding AB units will likely impact AB's public float and potentially its liquidity metrics. Meanwhile, the consolidated structure should enable more streamlined decision-making between the parent company and its asset management arm. This transaction effectively allows Equitable to capture more of AB's economic value without pursuing a full acquisition, which would have required a substantial premium above the tender price.

Corporate Strategy Expert

This tender offer represents a decisive strategic consolidation move by Equitable Holdings. By increasing its economic interest in AllianceBernstein L.P. to 68.6%, EQH strengthens its integrated financial services model that combines insurance operations (Equitable), wealth management (Equitable Advisors), and asset management (AllianceBernstein).

The transaction's structure is particularly noteworthy. Rather than pursuing a full acquisition at a likely premium, EQH opted for a voluntary tender approach that allowed willing unitholders to exit while preserving AB's existing NYSE listing structure. The measured participation (19.7 million units versus 46 million maximum) suggests a balanced outcome where EQH achieved meaningful ownership increase without excessive capital deployment.

This increased ownership stake enhances EQH's control over AB's considerable assets under management and the associated fee income stream. The consolidation should facilitate tighter operational integration, potentially unleashing synergies across EQH's business units while maintaining AB's distinct market identity. EQH can now capture a greater portion of AB's earnings without the complexities and premiums associated with a complete buyout, demonstrating pragmatic strategic execution at a reasonable capital cost of $757.8 million.

NEW YORK--(BUSINESS WIRE)-- Equitable Holdings, Inc. (NYSE: EQH), the leading financial services holding company of Equitable, AllianceBernstein and Equitable Advisors, today announced the final results of its cash tender offer to purchase up to 46,000,000 units (“Units”) representing assignments of beneficial ownership of limited partnership interests in AllianceBernstein Holding L.P. (NYSE: AB) (“AB Holding”), at a price of $38.50 per Unit, net to the seller in cash, for an aggregate purchase price of up to approximately $1.8 billion, less any applicable tax withholding (the “Offer”), which expired at 5:00 p.m., New York City time, on April 1, 2025 (the “Expiration Time”).

Based on the final count by the depositary and paying agent for the Offer, a total of 19,682,946 Units were properly tendered and not properly withdrawn under the Offer prior to the Expiration Time.

Pursuant to the terms of the Offer, Equitable has accepted for payment all 19,682,946 Units for an aggregate cost of approximately $757.8 million, excluding fees and expenses relating to the Offer. The depositary and paying agent will promptly pay for the Units accepted for payment.

The Units that Equitable accepted for purchase represent approximately 17.8% of the outstanding Units as of December 31, 2024. After giving effect to such purchase, Equitable will have an approximate 68.6% economic interest in AllianceBernstein L.P., the operating partnership of AB Holding.

Questions regarding the Offer and requests for assistance in connection with the Offer may be directed to D.F. King & Co., Inc. (“D.F. King”), the information agent for the Offer, by contacting them at (800) 848-3402 (toll-free) or via email at AB@dfking.com. Banks and brokers may contact D.F. King at (212) 269-5550 or Barclays Capital Inc., the dealer manager for the Offer, at (800) 438-3242 (toll-free). Computershare Trust Company, N.A. is acting as depositary and paying agent for the Offer.

This press release is provided for informational purposes only and does not constitute an offer to purchase or a solicitation of an offer to sell any Units.

About Equitable Holdings

Equitable Holdings, Inc. (NYSE: EQH) is a leading financial services holding company comprised of complementary and well-established businesses, Equitable, AllianceBernstein and Equitable Advisors. Equitable Holdings has $1.0 trillion in assets under management and administration (as of 12/31/2024) and more than 5 million client relationships globally. Founded in 1859, Equitable provides retirement and protection strategies to individuals, families and small businesses. AllianceBernstein is a global investment management firm that offers diversified investment services to institutional investors, individuals and private wealth clients. Equitable Advisors, LLC (Equitable Financial Advisors in MI and TN) has 4,600 duly registered and licensed financial professionals that provide financial planning, wealth management, retirement planning, protection and risk management services to clients across the country.

Note Regarding Forward-Looking Statements

This press release contains certain forward-looking statements. Words such as “expects,” “believes,” “anticipates,” “forecasts,” “intends,” “seeks,” “aims,” “plans,” “assumes,” “estimates,” “projects,” “should,” “would,” “could,” “may,” “will,” “shall” or variations of such words are generally part of forward-looking statements. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release. You should read this press release, the Offer to Purchase and the other related Offer documents that have been or will be delivered to you or filed by Equitable with the SEC completely and with the understanding that actual future events may be materially different from expectations. All forward-looking statements made in this press release are qualified by these cautionary statements. Further, any forward-looking statement speaks only as of the date on which it is made, and Equitable undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as otherwise may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250402887586/en/

Investor Relations

Erik Bass

(212) 314-2476

IR@equitable.com



Media Relations

Laura Yagerman

(212) 314-2010

mediarelations@equitable.com

Source: Equitable Holdings, Inc.

FAQ

How many AllianceBernstein (AB) units did Equitable Holdings (EQH) purchase in the tender offer?

Equitable Holdings purchased 19,682,946 AllianceBernstein units, representing 17.8% of outstanding Units as of December 31, 2024.

What was the purchase price per unit in EQH's tender offer for AB units?

Equitable Holdings paid $38.50 per unit in cash for the AllianceBernstein units.

What is EQH's total economic interest in AllianceBernstein after the tender offer?

After the tender offer, Equitable Holdings will have approximately 68.6% economic interest in AllianceBernstein L.P.

What was the total cost of EQH's tender offer for AB units?

The total cost of the tender offer was approximately $757.8 million, excluding fees and expenses.

When did EQH's tender offer for AB units expire?

The tender offer expired at 5:00 p.m., New York City time, on April 1, 2025.