KKR Announces Plans To Go Public
Back-door route to public transition requires acquisition of Amsterdam subsidiary.
July 28, 2008
KKR & Co., the private equity giant, has announced plans to become a public company by the end of the year. The announcement may conclude the year-long saga in the buyout firm’s stalled plans last year to become a public company.
The transaction is expected to give the firm a market value between $12 to $15 billion though a series of transactions by which KKR & Co. will acquire KKR Private Equity Investors (KPE), its Amsterdam-listed subsidiary, then will de-list KPE from Amsterdam in order to list the combined firm on the New York Stock Exchange, following completion of the transaction.
KPE, based in Guernsey, U.K., was created in May 2006 as a buyout company and subsidiary of KKR. KKR & Co. was founded in 1976 by Henry Kravis and George Roberts.
KPE shares rose from $10.50 at the end of the day on Friday July 25, to $13.77 on Monday morning, following the announcement.
Kravis and Roberts, who continue to run the firm, stated, “Going forward, KPE unitholders will benefit by being owners in a diversified asset management business that generates regular distributions of cash earnings. For KKR, this transaction provides us with additional capital for our business.”
Goldman Sachs and Morgan Stanley were financial advisors, and Simpson Thacher & Bartlett LLP was legal counsel to KKR in the transaction.
The public listing of the firm will make available 21 percent of the firm to investors, while the firm’s management and principals will maintain 79 percent of the firm. The company will vest and become available to employees over six to eight years.
For more information on related topics, visit the following:
