This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fortress Investment Buys Back Shares From Nomura

NEW YORK (The Deal) -- Fortress Investment Group (FIG - Get Report) has said it bought back Japanese investment bank Nomura Holdings' 12% stake in itself for $363.4 million.

The New York-listed private equity and hedge fund group said on Thursday, Feb. 13, it paid $6.00 per share for the holding, which Nomura first acquired in 2006.

Fortress added that both companies had "recommitted" to a strategic and mutually beneficial business relationship which had supported its growth in Asia.

Nomura, which reportedly made a $205 million gain on the deal, compared with the ¥16 billion ($158 billion) carrying value of the stake at the end of December.

Must Read: Shell Puts North Sea Rigs On The Block

But the exit, after eight years, took place at a discount of $1.99 per share to Fortress' closing price on Wednesday of $7.99. The shares closed at $8.47 on Thursday. It was also at a much bigger discount to the $888 million, or $16.12 per share, which Nomura paid when it bought what was then a 15% holding in Fortress before the group's 2007 flotation. (Nomura's stake has been diluted in the interim by the initial public offering and Fortress' subsequent capital raisings, but it has not previously sold any part of its holding). Fortress' shares are still almost exactly $10 a share below its IPO price of $18.50.

Nomura has been cutting back its overseas profile for the past 18 months, reversing much of the international expansion it pushed through during the past decade in an ill-fated attempt to join the bulge bracket of global investment banks. At the time, however, the Tokyo lender was following a fashion for investment banks to take a stake in hedge fund managers. Shortly before Nomura's December 2006 deal with Fortress, Merrill Lynch & Co. had bought a small stake in DiMaio Ahmad Capital LLC, while Morgan Stanley bought into four hedge funds, including Lansdowne Partners Ltd., FrontPoint Partners LLC, Avenue Capital Group and Brookville Capital Management LP.

The sale of the Fortress stake did little to support Nomura's share price. The stock lost 2.2% in Tokyo on Friday to close at 681 yen, while overall the Nikkei 225 index fell by more than 1.5%.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FIG $4.40 0.00%
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs