SoftBank Group plan buying Fortress Investment Group for $3.3 billion

SoftBank Group plan buying Fortress Investment Group for $3.3 billion…

Fortress principals Pete Briger, Wes Edens and Randy Nardone have agreed to continue leading the business, which will remain based in New York and operate independently within SoftBank, according to the statement.

Fortress which manages about $70 billion in assets and invests in real estate, credit and private equity, is to operate within Softbank as an independent business headquartered in New York.

The approval for the merging agreement, although still requires the approval of the stakeholders, but has been approved by the Fortress board.

“Fortress’s excellent track record speaks for itself, and we look forward to benefiting from its leadership, broad-based expertise and world-class investment platform,” Son, SoftBank’s chairman and chief executive officer, said in the statement.

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Shares of Fortress closed up 6.5 percent at $6.21 on Tuesday, giving the New York-based company a market value of about $2.4 billion. SoftBank rose 1.6 percent in Tokyo on Wednesday.

“SoftBank is not doing a great job in communicating where this fits into their investment strategy,” said Tomoaki Kawasaki, an analyst at Iwai Cosmo Securities Co. “There isn’t enough information and some people have an impression that this is an investment by the Vision Fund.”

In December, after a meeting with then president-elect Donald Trump, Son said SoftBank planned to invest $50 billion in the U.S. economy and add 50,000 jobs. It was not clear if the Fortress acquisition was part of those investment plans.

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“This is an investment in America, but it would be premature at this stage to say what the exact job impact will be,” SoftBank spokesman Matthew Nicholson said in an email.

In the Fortress deal, each Class A shareholder will receive $8.08 per share, which represents a premium of 38.6% to the closing price of Fortress Class A common stock on Monday. In addition, each Class A shareholder may receive up to two regular quarterly dividends prior to the closing, each in an amount not to exceed 9 cents a Share.

The three billionaires Edens, Randy Nardone and Peter Briger who founded Fortress in 1998 have accepted to continue to lead Fortress and have committed to invest 50% of their after-tax proceeds from the transaction in Fortress-managed funds and vehicles, according to a press release.

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