- The stock-for-stock acquisition in which KFN shareholders will receive 0.51 common units of KKR for each share of KFN they own values the company at $2.6B or $12.79 per share, based on today's KKR close of $25.08.
- KKR's book value is expected to growth to $9.3B from $7.2B, and book value per adjusted unit will grow to $11.34 from $10.07. The transaction is expected to be accretive to both the size of KKR's distribution per unit as well as the predictable and recurring component of future distributions. Integration risk is minimal as KFN's assets are already managed by KKR.
- The deal is currently a 35% premium to today's close for KFN and amounts to 1.15x book value.
- The boards of both companies have approved the merger.
- KFN +31%, KKR +1.7% AH
- Press release
KKR to purchase KKR Financial for $2.6B
Dec 16 2013, 17:03 ET