Late in 2017, a press release was issued regarding the SoftBank Group’s acquisition of Fortress Investment Group. This acquisition was a long time coming, and had been discussed earlier in the year by shareholders. The transaction was agreed upon by all shareholders, and it was completed by December 2017. Why did SoftBank Group seek to purchase the Fortress Investment Group?
The sale totaled $3.3 billion dollars in cash. That number is rather large considering that the investment group was considered to be one of the top investment groups in the country. The close of the transaction transferred all of the shares into the name of SoftBank Group, however the daily operations of the investment group would not change. There were outstanding shares in the Fortress Class A shares which were converted into a price of $8.08 per share. These shares were distributed according to a proxy that was agreed upon by all shareholders.
What happened to the stocks that were once under the name of Fortress Investment Group? All of those listed on the NYSE would now fall under the name and stocks listed for SBG. SBG also agreed that the outcome of this transaction as well as the impact of the transfer of stocks would be announced when necessary. There was also no change in regards to the partners. Randal Nardone, Peter Briger, and Wes Edens would all continue their work as usual.
The SoftBank Group has been what the industry calls a major player in the technology marketplace. With the increase in information overload and new ways of segmenting this information, the company wanted to get their piece of the pie by focusing more on funds that were tech driven. Needless to say, their acquisition of Fortress Investment Group was an unusual investment for them, and somewhat outside of their usual interests.
This was a step in the right direction to diversify their funds, and potentially carry business in real estate investments and other areas as well.
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