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India

WisdomTree to buy $18 bln European exchange-traded commodity from ETF Securities


Monday, 13 Nov 2017 

Nov 13 (Reuters) - Wisdomtree Investments Inc ::To acquire $18 billion european exchange-traded commodity, currency and short-and-leveraged business from ETF Securities.Transaction expected to be immediately and significantly accretive to earnings​.Will exchange $253 million of cash and stock consideration of 30 million WisdomTree shares for acquired business​.WisdomTree will adjust its quarterly dividend to $0.03 per share, starting with dividend scheduled for payment in Q1 of 2018​.Cash consideration is $253 million, funded by $200 million of newly issued debt plus $53 million of cash on hand​.To buy ETF Securities' European exchange-traded commodity, currency and short-and-leveraged business.Total consideration of deal is valued at $611 million​.Stock consideration consists of 15.3 million shares of common stock and 14,750 shares of a new class of Series A non-voting preferred stock.Deal to buy ETF Securities' European exchange-traded commodity, currency, short-and-leveraged business​ includes $17.6 billion of AUM as of Nov. 9.WisdomTree will adjust its quarterly dividend to $0.03 per share, starting with dividend scheduled for payment in Q1 of 2018​.Voting rights associated with stock consideration will be capped at 9.99 percent. 

Company Quote

7.44
0.01 +0.13%
16 Nov 2018