SoftBank of Japan announced earlier this week that is acquiring Fortress Investment Group in an all-cash deal valued at around $3.3 billion.
In a press release, SoftBank said, under the terms of the deal, each Fortress Class A shareholder will receive $8.08 per share, which represents a premium of 38.6 percent to the closing price of Fortress Class A common stock on Feb. 13, 2017, and a premium of 51.2 percent to Fortress’ three-month volume-weighted average price, excluding dividends. In addition, each Fortress Class A shareholder may receive up to two regular quarterly dividends prior to the closing, each in an amount not to exceed $0.09 per Class A Share. Fortress plans to maintain its current base dividend of $0.09 per share for the fourth quarter of 2016 and, if closing does not occur prior to the applicable payment date, for the first quarter of 2017.
SoftBank said Fortress Principals Pete Briger, Wes Edens and Randy Nardone have agreed to stay on at the investment firm and have all committed to invest 50 percent of their after-tax proceeds from the transaction in Fortress-managed funds and vehicles. Fortress’ senior investment professionals will remain in place and will retain their significant participation interests in fund performance. Fortress will operate within SoftBank as an independent business.
“Fortress’ excellent track record speaks for itself, and we look forward to benefitting from its leadership, broad-based expertise and world-class investment platform,” said Masayoshi Son, chairman and CEO of SoftBank Group Corp., in a press release announcing the deal. “For SoftBank, this opportunity will immediately help expand our group capabilities and, alongside our soon-to-be-established SoftBank Vision Fund platform, will accelerate our SoftBank 2.0 transformation strategy of bold, disciplined investment and world-class execution to drive sustainable long-term growth.”