Banking Times: Daily Banking News
 
 
Daily Banking Industry News
Thursday 18th of March 2010
November 15, 2007

Colony Capital In Equity Sale Proposals

by Stewart Douglas

Story link: Colony Capital In Equity Sale Proposals

US based private equity firm Colony Capital today announced that it was considering selling a portion of its company to a high profile Middle East investment fund, according to reports from a company spokesperson today which would see it sacrifice a degree of control in the way its business is run.

The privately held investment firm is rumoured to have been approached by a Middle Eastern collective investment fund interested in buying a portion of equity in the company, which it is reported to consider as an ‘interesting’ proposal.

The Abu Dhabi government backed fund Mubadala has already acquired substantial stakes in other investment companies over the course of the year, including a 7.5% holding in Carlyle, a holding in Apollo Management and a 10% stake in Dubai International Management.

This kind of proposal is thought to be particularly viable for many private investment companies, given that they are mainly privately held. 

Thus a small sale of capital enables firms to raise finance without sacrificing overall control in terms of voting rights.  It is also thought to be helpful for private equity firms considering an IPO as a guide for launch price.

Colony has enjoyed a profitable few years, growing steadily over the period to increase the size and statures of its acquisitions and dividend incomes.  Notably this month it rounded off its most considerable ever acquisition, taking over Station Casinos in a deal rumoured to be worth $8.9 billion.

It is thought that any sale of equity would enable Colony to increase capital reserves in order to increase their investment holdings and bolster existing equity stakes, whilst it could prove profitable for Mubadala with a view to receiving dividend payments.
 

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: Colony Capital In Equity Sale Proposals

UniCredit strengthens Equity Capital Markets team  ...

Lloyds’ fundraising plans submitted to FSA stress test  ...

Northern Rock auction may take months  ...

Barclays confirms sale of iShares to CVC Capital  ...

Northern Rock considers new bids  ...

No Comments »

No comments yet.

Leave a comment


Previous: « Thain Appointed As Merrill Executive
Next: Northern Rock auction may take months »

Visited 734 times, 1 so far today


Savings & Investment News


Borrowing & Lending News