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Laxman Pai, Opalesque Asia: European private equity firm EQT AB struck a 6.8 billion euros ($7.5 billion) cash and stock deal to buy rival private-equity firm Baring Private Equity Asia (BPEA), a big bet on the growth of Asia's private markets.
According to Bloomberg, it's the biggest takeover of a private-equity company by another firm from within the industry and gives EQT "immediate pan-Asia presence at scale," according to a statement Wednesday.
The Stockholm-listed buyout giant said in a press release that, the deal will give EQT almost €18 billion ($19.8 billion), in additional assets for a total of more than €90 billion, boosting management fees and investment income from investments, while establishing the Swedish asset manager as a major operator in Asia to complement its bigger operations in Europe and the U.S.
EQT will acquire 100% of the BPEA management company, the BPEA general partner entities which control the BPEA funds, and the right to carry interest in selected existing funds (including 25% in BPEA Fund VI and 35% in BPEA Fund VII).
EQT will invest in and be entitled to 35% of the carried interest in all future funds, starting with BPEA Fund VIII, in line with existing EQT policies, said the release.
The total consideration of EUR 6.8bn on a cash and debt-free basis (with a normalized level of working capital), of which approximately EUR 5.3bn is to be paid through the issue of 191.2m new EQT ordinary shares (corresponding to a dilut...................... To view our full article Click here
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