Buyout firm KKR is acquiring publicly traded credit investment affiliate KKR Financial Holdings (KFN) in an exchange of stock worth $2.6 billion.
Announced Monday evening, the deal calls for KKR to exchange 0.51 shares of its own stock for each KFN share. According to KKR’s Monday closing price, the deal would value KFN at $12.79 per share, which represents a 35 percent premium over the target’s own stock price at Monday’s close. The transaction, which has been approved by KKR’s board of directors and a committee of independent KFN directors, is expected to close in the first half of 2014, pending regulatory approvals.
