Pacific Current shares rise on Carlisle Management stake sale
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More news: Pacific Current shares were up 2% to $10.70 by 2:25pm AEST following news that it would offload its total stake in Carlisle Management to Abacus Life as part of the latter's deal to acquire Carlisle for roughly US$200 million ($298.47 million).
The asset manager has previously said owning listed securities over the long-term is beyond its investment mandate.
Pacific Current to sell Carlisle Management stake
The news: Asset manager Pacific Current Group has agreed to sell its entire stake in investment manager Carlisle Management as part of the latter’s takeover by Nasdaq listed Abacus Life.
The numbers: As part of the deal, Pacific will receive net proceeds currently valued at USD61.2 million ($91.3 million), with 90% of that to be paid at the close of the transaction and the balance 18 months subsequently.
The proceeds will include 1.99 million newly-issued Abacus bonds with a coupon of 9.875% and another 1.37 million shares of Abacus stock.
The context: The transaction is part of a broader deal for Abacus, an alternative asset manager, to acquire Luxembourg-based Carlisle for roughly USD200 million. The acquisition will add USD2 billion to Abacus’ assets under management.
Earlier this year, Pacific Current also sold its 4% stake in listed fund manager GQG, culminating a long-stated objective to reduce equity market risk exposure in its portfolio.
The asset manager has previously said owning listed securities over the long-term is beyond its investment mandate.
