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KKR to buy KKR Financial Holdings for $2.6 billion in stock

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December 16
8:35 PM 2013

American private equity firm KKR & Co. LP on Monday said that it would acquire KKR Financial Holdings LLC (KFN) in an all-stock deal. The said deal would value KFN at $2.6 billion. KKR launched the specialty finance company over nine years ago.

According to a report by Reuters, KKR offered to pay KFN shareholders with 0.51 KKR shares for each of their KFN shares. This is equivalent to a 35% premium based on Monday's closing prices. 

KKR said the transaction would immediately add to its earnings and boost its balance sheet. It would give the multinational investment firm capital to further expand its investment platform and invest in its funds, the report said. 

KKR in a statement said that the deal is subject to approval by KFN shareholders as well as customary regulatory approvals. It is expected to close in the first half of 2014. Upon closing the transaction, KFN will become a subsidiary of KKR.

KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. It has $90.2 billion in assets under management as of September 30, 2013, the statement said.

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