It's fairly self-evident that Fortress Investment (FIG +5.9%) buying back the 12% stake in the company held by Nomura (NMR) at a 25% discount to last night's close is a good deal for Fortress, but RBC's Bulent Ozcan takes the time to write up his own thumbs up on the deal.
He notes Nomura - a strategic shareholder - had purchased 55M shares for $888M prior to Fortress going public at the peak in 2007. Nomura subsequently added a small amount to its stake in 2009. Ozcan estimates Nomura's weighted-average price at around $15 per share (it sold for $6).
The deal, says Ozcan, removes an overhang on Fortress' stock, as the company will no longer have to pay Nomura a dividend on that 12% stake, paving the way for higher distributions for remaining shareholders. How much of an overhang it was remains to be seen as the stock has been a 10-bagger since the 2009 lows.