(New York) – Investment firm Oaktree Capital is currently in exclusive negotiations to acquire a controlling interest in two subsidiaries of B. Riley, according to a report by Bloomberg News on Wednesday.
Reports suggest that Oaktree is looking to purchase a stake between 51% and 55% in B. Riley’s appraisal and valuation services division, as well as its retail, wholesale, and industrial solutions segment, previously known as Great American Group. The deal, estimated to be worth approximately $380 million, is expected to be finalized and announced by next week.
Neither Oaktree Capital nor B. Riley has provided a statement in response to inquiries from Reuters.
Following the news, shares of B. Riley rebounded, surging 12% in afternoon trading after experiencing losses earlier in the day.
Last week, Bryant Riley, co-founder and co-CEO of B. Riley, made an offer to acquire the bank amidst concerns of a second-quarter loss, which had triggered a decline in the bank’s stock value.
(By Manya Saini in Bengaluru; Edited by Shailesh Kuber)