John Paulson’s hedge fund agreed to buy a stake in a $238 billion asset manager from Chinese conglomerate HNA Group Co.
Paulson & Co. plans to buy most of the ordinary shares of BrightSphere Investment Group PLC
BSIG, +0.31%
held by a unit of HNA, the New York-listed asset manager said in statement. Once completed, Paulson & Co. is expected to own just less than 25% of the ordinary shares of BrightSphere, which recently had a market capitalization of about $1.36 billion.
BrightSphere was previously called OM Asset Management and was known as the American investment arm of U.K. insurer Old Mutual PLC. HNA, one of China’s largest privately held conglomerates, agreed to pay $446 million for a 24.9% stake in the business about a year and a half ago, before it was renamed.
On Monday evening, BrightSphere disclosed that Paulson paid $12.80 a share for an initial portion of its purchase, totaling around $59 million. The hedge fund will pay $13.95 a share for a second and larger tranche of stock after the deal receives various regulatory approvals.
An expanded version of this report appears on WSJ.com.
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