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May 22 (Reuters) – Abu Dhabi’s Mubadala Investments is set to buy a majority stake in U.S. asset manager Fortress Investment Group from Japan’s SoftBank Group Corp. (9984.T).
Financial terms of the deal were not disclosed, Mubadala and Fortress Investment said in a joint statement on Monday.
SoftBank, which bought Fortress for $3.3 billion in 2017, has been shedding assets to shore up its balance sheet as the value of its technology portfolio has declined.
The Japanese tech group posted a net loss of $7.18 billion for the year ended March 31, having sold assets including its stake in Chinese e-commerce giant Alibaba Group Holding Ltd. (9988.HK).
Following the deal, Fortress management will own 30 percent of the company, while Mubadala Capital will hold the rest, the statement said. Mubadala already owns 10% of Fortress. Fortress management will hold a class of equity that will allow it to appoint a majority of the board.
Fortress will name Drew McKnight and Joshua Pack as co-CEOs and Pete Brig as chairman, the companies said.
Reporting by Chandni Shah in Bengaluru and Sam Nussey in Tokyo; Editing by Rashmi Aich
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