Benzinga | Nov 4, 2021 07:29AM EDT

BrightSphere Investment Group Reports Launch Of Fixed Price Tender Offer To Buy Up To 33.3M Shares Of Common Stock At $3.150/Share

* Announces plans to launch a fixed price tender offer to repurchase up to 33,300,000 shares of common stock at a purchase price of $31.50

* Following completion of the tender offer, if needed, BrightSphere will repurchase shares of common stock from certain funds managed by Paulson & Co. and its affiliates such that the funds' ownership does not exceed 19.99%

BOSTON--(BUSINESS WIRE)-- BrightSphere Investment Group Inc. (NYSE:BSIG) today announced its plan to launch a fixed price tender offer to purchase up to 33,300,000 shares of its common stock (the "Shares") at a purchase price of $31.50 per share (the "Purchase Price"). On November 3, 2021, the closing price of BrightSphere's common stock was $30.13 per share. The tender offer is expected to commence today and to expire at 5:00 p.m., New York City Time, on December 6, 2021, unless the offer is extended.

Under the terms of the tender offer, stockholders who tender their shares receive a fixed price of $31.50 for each share, subject to proration if the tender offer is oversubscribed. If the tender offer is fully subscribed, BrightSphere will have purchased approximately 41.7% of outstanding Shares as of October 29, 2021.

While BrightSphere's Board of Directors has authorized BrightSphere to make the tender offer, neither BrightSphere nor its Board of Directors makes any recommendation to any stockholder as to whether to tender or refrain from tendering any Shares. BrightSphere has not authorized any person to make any such recommendation. Stockholders must decide whether to tender their Shares and, if so, how many Shares to tender. In doing so, stockholders should carefully evaluate all of the information in the tender offer documents, when available, before making any decision with respect to the tender offer, and should consult their own broker or other financial and tax advisors.

On November 3, 2021, BrightSphere entered into a repurchase agreement with Paulson & Co. Inc. ("Paulson & Co.") and certain funds managed by Paulson & Co. and its affiliates (the "Paulson Funds") pursuant to which the Company agreed that, on the 11th day after the expiration date of the tender offer, it will repurchase from the Paulson Funds, if necessary, a number of Shares, such that, upon the closing of the repurchase, the Paulson Funds' percentage ownership interest in the Company's total outstanding Shares shall not exceed 19.99%. In the repurchase agreement, the Paulson Funds have agreed to tender in the tender offer at least 41.7% of the total Shares held by them as of the date hereof.