Better known by some as the 'barbarians at the gate' in the RJR Nabisco saga, KKR founders Henry Kravis and George Roberts are planning a listing on the NYSE. Rather than a straight public offering however, the private equity giant is simply going to list in New York and then exchange shares in current Amsterdam-traded KKR Guernsey vehicle for new ones. The European entity would then be dissolved.
The creative and relatively rare structure to the deal has strong benefits in a very tough IPO market. Kravis and Roberts will benefit personally cash flow-wise while still maintaining control over the company. If shares increase in value, it could also give the firm more capital to leverage for deals. Additionally, KKR would benefit from added flexibility as it competes with rivals such as Blackstone for deals.
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