B. Riley soars after $386 mln deal to sell Great American Group unit to Oaktree
Updates
** Shares of investment bank B. Riley RILY.O jump as much as 32.6%, last up 26.2% at $5.54
** RILY agrees to sell its appraisal and valuations unit Great American Group to asset manager Oaktree Capital in a $386 mln deal
** Bank will get about $203 mln in cash, preferred units worth about $183 mln in a new holding company for Great American Group, and a minority share of common units in the holding company
** Transaction is an important step in our plan to reduce our debt while reinvesting in our core financial services businesses - co-CEO Bryant Riley
** RILY had said last month it was in exclusive negotiations with a global asset manager to sell a 53% stake in Great American Group business
** Bank has been under immense pressure since August when it warned that its exposure to Franchise could result in a write-down and losses for the second quarter ended June 30
** Deal expected to close in Q4 2024
** RILY down 79% YTD, as of last close
Reporting by Pranav Kashyap and Arasu Kannagi Basil in Bengaluru
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