Alfa Mutual Insurance Co., Alfa Mutual Fire Insurance Co. and Alfa Mutual General Insurance Co., own a majority of the company's common shares and are referred to collectively as Alfa Mutual.
The shareholders offered to buy outstanding company shares it does not currently own. Its $17.60 per share cash offer represents a 15.8 percent premium over the closing price on Tuesday.
The company board appointed a special committee of its four independent directors to review, evaluate, and negotiate the proposal. The company said it does not intend to comment further on discussions with Alfa Mutual until the committee has made a recommendation to the full board.
The company added that Alfa Mutual is interested only in acquiring the publicly held shares of Alfa Corp., and has no interest in selling its controlling shares in the company.