-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PaKt4EUzPBLMlnIUnsb3JMiBZJE9VGeRXXzDe5X9tqxa7D1CFbF+MLg9BEOxYOC0 F912uGC2fZKxjMD4zIR+Cg== 0000005016-97-000012.txt : 19970715 0000005016-97-000012.hdr.sgml : 19970715 ACCESSION NUMBER: 0000005016-97-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970711 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970714 SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN FINANCIAL CORP CENTRAL INDEX KEY: 0000005016 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 310624874 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07361 FILM NUMBER: 97640034 BUSINESS ADDRESS: STREET 1: ONE E 4TH ST CITY: CINCINNATI STATE: OH ZIP: 45202 BUSINESS PHONE: 5135792121 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of report: July 11, 1997 Commission File No. 1-7361 (Date of earliest event reported) AMERICAN FINANCIAL CORPORATION Incorporated under IRS Employer the laws of Ohio Identification No. 31-0624874 One East Fourth Street Cincinnati, Ohio 45202 Phone: (513) 579-2121 Former name or former address, if changed since last report - not appl icable. AMERICAN FINANCIAL CORPORATION FORM 8-K Item 5. Other Events. On July 11, 1997, American Financial Corporation ("AFC") entered into an agreement with American Financial Group, Inc. pursuant to which AFC's Series F and Series G Preferred Stock will be exchanged, at the option of each holder, for $22.35 and $10.50 cash, respectively, or a new issue of AFC voting preferred stock. Please see the News Release attached hereto as Exhibit 1. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (a) Not Applicable (b) Not Applicable (c) Exhibit (99) Additional Exhibits. (1) American Financial Corporation News Release SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. AMERICAN FINANCIAL CORPORATION July 14, 1997 By: James C. Kennedy James C. Kennedy Deputy General Counsel & Secretary Exhibit 1 AMERICAN FINANCIAL CORPORATION NEWS RELEASE Date: July 11, 1997 Contact: Anne N. Watson For Release: Immediately Phone: (513) 579-6652 AMERICAN FINANCIAL CORPORATION ANNOUNCES SIGNING OF MERGER AGREEMENTS (Cincinnati, Ohio) American Financial Corporation ("AFC") announced today that it has entered into an agreement with American Financial Group, Inc. ("AFG") pursuant to which AFC's Series F and Series G Preferred Stock will be exchanged, at the option of each holder, for $22.35 and $10.50 cash, respectively, or a new issue of AFC voting preferred stock. AFG owns 100% of the common stock and 76% of the voting equity securities of AFC. AFC has two series of publicly-held voting preferred stock, Series F and Series G, both listed on the Pacific Exchange, which together represent approximately 24% of AFC's voting securities. Under the merger agreement, AFC will merge with a wholly- owned subsidiary pursuant to which each share of Series F Preferred Stock will be converted into the right to receive $22.35 per share and each share of Series G Preferred Stock will be converted into the right to receive $10.50 per share. The aggregate merger consideration to be received by a holder would be payable, at the holder's election, either in cash, in shares of a new AFC Series J Preferred Stock, or a combination of the two. The transaction has been structured to be tax-free to AFC Preferred Shareholders receiving solely Series J Preferred Stock in the merger. While the basic terms of the transaction remained the same as those announced on April 23, 1997, subsequent negotiations between AFG and a Special Committee of AFC's Board of Directors did result in an increase in the amount of consideration to be received by holders of Series F Preferred Stock. Holders of Series J Preferred Stock will hold approximately 23% of the voting power of AFC after the AFC Merger, which has been structured to be tax free to current AFC preferred stockholders receiving solely shares of Series J Preferred Stock. The Series J Preferred Stock will be redeemable, at AFC's option, at 103% of principal amount after the eighth anniversary of its issuance, declining to 101.5% of principal amount after the ninth anniversary and 100% of principal amount after the tenth anniversary of its issuance. It will have a liquidation value of $22.35 per share and an annual dividend of $1.90 per share, paid on a semi-annual basis. The Merger Agreement requires that approximately $70.4 million in liquidation value of the new Preferred Stock be issued in the transaction. If the Series J Preferred Stock alternative is over-subscribed, holders will be allocated shares on a pro-rata basis. This announcement does not constitute a solicitation of proxies or consents of AFC shareholders, which will only be made by means of a proxy statement relating to the proposal which is expected to be filed with the Securities and Exchange Commission within the next week. American Financial Group Inc., through AFC, is engaged primarily in specialty and multi-line property and casualty insurance businesses and in the sale of tax-deferred annuities and certain life and health insurance products. # # # -----END PRIVACY-ENHANCED MESSAGE-----