Despite Blackstone private equity giant poor performance of equity markets, Kohlberg Kravis Roberts & Co (KKR) decision to make, is courageous. KKR buyout giant announced that list in New York Stock Exchange (NYSE), later this year. One of the reasons is that the company keep the talent.
According to the plan, KKR & Co LP acquire all assets and liabilities of KKR Private Equity Investors, LP (KPE), Euronext Amsterdam listed companies. It should begin to delete this point, followed by the list on the Stock Exchange of New York, later this year. According to the agency Reuter, the IPO May KKR value of about $ 15 to $ 19 billion.
Holders of shares of the KPE receive interests in KKR, KPE, according to the courses of Euronext. KKR market share of 79 percent of companies registered and the rest is owned by the existing shareholders of KPE.
The merger does not lead to the payment in cash or the grant of a new actions. The agreement also contains a clause stating that if the new company’s shares to trade below a certain threshold price of $ 22.5 after three years, KKR nor dilute a 6 per cent of its operation. The transaction is now the approval of the shareholders of KPE.
The agreement would KKR to keep talent through ESOPs tie and his collection of funds. It also provides for strengthening the ownership of KKR Private Equity and a portfolio of capital basis for the initiation of growth initiatives.
KPE public in May 2006 in Euronext with 5 billion U.S. dollars a publicly traded company. KKR, KPE should alsong with a rating of about 15-19 billion U.S. dollars. There are several other funds, which are publicly traded. Blackstone, KKR’s rival, are made available to the public last June at a price of $ 31 per share. Today, its negotiations on the stock exchange in New York to $ 17. Also other means, AP Alternative Assets, managed by Apollo, the transactions in the market of Euronext. India focuses on the real estate private equity firm Yatra Capital is also on Euronext. KKR had an IPO a year ago.
“For KKR, this transaction gives us additional capital for our company. The road to a public list KKR can do what we do best - grow the company in the world and generate solid returns for our investors a platform, wider and a better financial footing, said Henry R. Kravis and George R. Roberts, co-founder of KKR.
KKR has also announced today that they expect that their assets under management from 30 June 2008 to approximately $ 60.8 billion, an increase of 53.2 billion U.S. dollars on December 31, 2007. More than 98 percent of assets under management are locked up more than 10 years. Therefore, KKR has invested 14 percent of the $ 4 billion fund Asia. Citigroup acts as exclusive financial adviser of KPE. Lazard acted as financial advisor to the independent board members and Bredin Prat acts as legal advisor to the KPE most important and independent.