KKR to acquire its specialty finance company for $2.6 bln

Monday, 16 Dec 2013 | 5:11 PM ET

NEW YORK, Dec 16 (Reuters) - Investment firm KKR & Co LP said on Monday it would acquire KKR Financial Holdings LLC (KFN) in an all-stock deal that would value the specialty finance company it launched more than nine years ago at $2.6 billion.

KKR offered to pay KFN shareholders with 0.51 KKR shares for each of their KFN shares, equivalent to a 35 percent premium based on Monday's closing prices. The deal is subject to a vote by KFN shareholders.

KKR said the transaction would immediately add to its earnings and boost its balance sheet, giving it more capital to expand its investment platform further and invest in its funds.

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