Nomura Sells Out Of Fortress

Feb 14 2014 | 11:14am ET

Fortress Investment Group has repurchased Nomura Holdings' stake for $363.4 million.

The deal ends Nomura's seven years as an owner of the alternative investments giant, which went public in 2007, just three months after Nomura paid about $888 million for a 15% stake. At the time of yesterday's sale—at a 25% discount to Fortress' closing price on Wednesday—the Japanese bank owned 12% of Fortress.

Fortress went public in February 2007, just three months after selling the stake to Nomura.

Nomura will continue to provide investment-banking services to Fortress. The firm has distributed Fortress' products since the companies' initial deal.

"We are very pleased to announce a transaction that provides compelling benefits to both Fortress shareholders and to the corporate objectives of a valued business partner," Fortress co-founder Wesley Edens said.

Among those objectives is to come into compliance with new global banking regulations, which both limit banks' alternative investment activities and impose higher capital requirements. Nomura wrote down the value of most of its Fortress stake during the financial crisis.


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