HNA Capital U.S. will acquire a 24.95% stake in U.S.-based OM Asset Management in a two-part, $446 million deal.
In a news release Saturday, OMAM parent company Old Mutual PLC, based in London, said the deal comprises a 9.95% sale of OMAM shares held by Old Mutual at a price of $15.30 per share, and the sale of a further 15% of shares at $15.75 each. With the sales, Old Mutual's shares in OMAM will be reduced to 25.9%, from 50.8%. Further details could not be learned by press time.
New York-based HNA Capital U.S. is a subsidiary of HNA Capital, the financial services business of China-based conglomerate HNA Group.
The first part of the deal is subject to antitrust clearance in the U.S., and is expected to take place in about 30 days. The second part is subject to regulatory approvals in other jurisdictions, and is expected to take place in the second half of this year.
Old Mutual said it is not subject to any lock-up arrangements related to its remaining shares in OMAM, besides its commitment to retain enough shares to perform its obligations regarding this deal. It intends to continue the reduction of its holding in OMAM in an orderly manner, said the release.
James Ritchie, chairman of OMAM's board of directors, said in the release: "We are pleased to welcome HNA Capital U.S. as a new, supportive investor in OMAM. We remain focused on executing our growth strategy, which includes working collaboratively with our high quality affiliates to diversify their businesses and expand their global distribution opportunities, as well as acquiring new affiliates, to generate strong, long-term value for all of our shareholders. We look forward to working with HNA Capital US to accelerate our growth strategy for the benefit of our clients, affiliates and shareholders."
Guang Yang, CEO of HNA Capital U.S., said: "OMAM is a diversified, at-scale multi-boutique asset management franchise with an attractive portfolio of high quality investment managers. We are pleased with our investment in OMAM and look forward to supporting OMAM's continued growth."
One HNA Capital U.S.-nominated director is expected to join OMAM's board on completion of the first part of the deal, and a second on completion of the final stage. This directors will replace existing nominees of Old Mutual.
OMAM has $240 billion of assets under management.