By Lisa Kerner
Charlotte, N.C., June 20 - Nuveen Investments, Inc. stockholders will receive $65.00 per share after the company agreed to a $6.3 billion all-cash buyout offer from an investment group led by Madison Dearborn Partners, LLC.
The per-share price is a 20% premium over the closing price of Nuveen shares on June 19 and a 26% premium to the 90-day average closing price of $51.56.
Nuveen's board unanimously approved the deal and recommends shareholders also approve the plan.
The agreement gives Nuveen until July 19 to solicit proposals from third parties, and the merger is expected to close by the end of the year.
"We are pleased with this transaction, which reflects an important step in our firm's development and a compelling value for our stockholders," Nuveen chairman and chief executive officer Timothy R. Schwertfeger said in a company news release.
"This transaction by Madison Dearborn Partners, with an anticipated equity participation by management, will provide Nuveen Investments the opportunity to accelerate our development of new investment capabilities, products and distribution channels, and help us attract and retain top industry talent.
"We believe that we will be able to develop even further our institutional and high-net-worth presence, our mutual fund business and our structured product expertise."
Nuveen also announced that company president John P. Amboian will succeed Schwertfeger as CEO effective July 1. Schwertfeger will become the non-executive chairman of the Nuveen corporate board and will remain the chairman of the Nuveen fund board.
Nuveen is an investment services company located in Chicago.
| Acquirer: | Madison Dearborn Partners LLC
|
| Target: | Nuveen Investments, Inc.
|
| Transaction total: | $6.3 billion
|
| Price per share: | $65.00
|
| Announcement date: | June 20
|
| Expected closing: | By the end of 2007
|
| Stock price for target: | NYSE: JNC: $54.16 on June 19
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
