SOFTBANK COMPLETES FORTRESS ACQUISITION
US firm will operate independently and stay headquartered in New York
NEW YORK
JAPAN’S SoftBank Group Corp has completed its US$3.3 billion (RM13.41 billion) cash deal for Fortress Investment Group LLC, marking the first time a publicly traded United States private equity firm has delisted.
Trading in Fortress shares was halted before Wednesday morning’s announcement. Its stock closed its last day of trading on Tuesday at US$7.85 a share, almost 58 per cent below the 2007 initial public offering price.
SoftBank struck the deal to buy Fortress for US$8.08 a share in February. The price was 39 per cent above the stock’s close the day before the acquisition was announced.
Fortress’s day-to-day operations and investing style hasn’t changed because of the acquisition, said Fortress co-chairman Wes Edens in an interview.
“It hasn’t changed it much other than that we don’t have to do earnings calls,” he said.
“We’re rooting for being private. I’m excited about that.”
Fortress, founded by Edens and chief executive officer Randy Nardone in 1998, will operate independently and remain headquartered, here, said SoftBank on Wednesday in a statement.
The Japanese company, led by founder Masayoshi Son, said it’s c o m m i t t e d t o ma i n t a i n i n g Fortress’s management, business model, brand, employees, processes and culture. Bloomberg