Japan’s Softbank to Buy Fortress Investment

Softbank Group has agreed to buy New York-based asset manager Fortress Investment Group for $3.3 billion in cash to help the Japanese telecommunications and technology company to expand into private equity investments.

Under the terms of the transaction each Fortress class A shareholder will receive $8.08 per share, a 38.6% to the closing price of Fortress stock on Feb. 13, the companies said on Wednesday. In addition, Fortress shareholders may also receive up to two regular quarterly dividends before closing the deal of a maximum of $0.09 per share.

Fortress pledged to maintain a dividend payment of $0.09 from fourth quarter earnings and if the transaction is not completed by the date the payout is due, again from first-quarter earnings.

The merger,which will probably be completed in the second half of this year, has been approved by a special committee of independent directors of Fortress and the full board of directors and is subject to approval by the investment firm’s shareholders.

By Bucky Rini