The Japanese megabank Softbank has confirmed the acquisition of Fortress Investments Group. The deal was announced 12/27/2017 after news about the deal leaked early in the year. The final papers have been signed with the company’s shareholders set to receive $3.3 billion from Softbank.
Fortress shareholders will receive compensation based on each entities shareholding. Class A shareholders are guaranteed to receive at least $8.08 for each share they hold. Following the finalization of the acquisition, Softbank has become the sole shareholder of all Fortress Investment Group shares.
The New York stock exchange also expressed that they are going to delist Fortress shares from their listed shares. This announcement comes after regulators authorized the deal. According to the terms of the agreement, Softbank is going to allow the current management of Fortress Investment to remain in place.
Shortly after the deal was finalized, Mr. Randal Nardone said that he was optimistic about the agreement and the future of the company. He noted that the investment interests of Fortress remains in the industries in which it has always invested.
As such, Mr. Randal said that the company would continue to invest in railroads, hedge funds, credit funds, real estate, and private equity. Mr. Randal Nardone also noted that they expect Softbank Group’s acquisition of Fortress to enable them to access bigger sources of credit, which will allow them to expand and accelerate its growth.
Mr. Randal Nardone also maintains that the deal was great for his company’s investors because Softbank acquired the firm at $8.08 per share at a time when its share was trading at $5.83. The significant difference in pricing meant that shareholders got more per share as compared to the current share value. Mr. Randal Nardone first graduated as a lawyer from Boston University of law and later with a business degree from University of Connecticut. He serves as a board member to more than eight companies.