BUZZ-B. Riley rises on talks to sell majority stake in Great American Group unit

Reuters09-09

** Shares of investment bank B. Riley Financial rise 0.8% to $5.42 premarket

** RILY says it has entered exclusive negotiations with an unnamed asset manager to sell a 53% stake in its Great American Group business

** Proposed transaction values the business at $380 mln, including debt

** Co has also entered into a non-binding commitment for debt financing of B. Riley and bebe stores businesses, which could generate about $236 mln in proceeds

** RILY expects $410 mln in proceeds from both transactions, which will be mainly used to cut debt owed to Nomura to about $125 mln by 2024 end

** The Los Angeles, California-based bank has been in a turmoil after it suspended its dividend last month and warned of a Q2 loss in the range of $435 mln to $475 mln

** As of previous close, RILY shares down 74.4% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment