Cowen Is the Latest U.S. Stock to Surge Thanks to Chinese Investment
Wed Mar 29 2017
Mark Cooper (1809 articles)

Cowen Is the Latest U.S. Stock to Surge Thanks to Chinese Investment

Brokerage Cowen Group’s shares surged 19% on Wednesday after Chinese conglomerate CEFC China said it agreed to acquire a stake of about 20% in the U.S. company for $ 100 million.

The deal, the latest in a series of investments by Chinese firms in U.S. companies, will also give the CEFC the right to appoint three directors to the New York-based company’s board.

CEFC’s announcement comes a day after U.S. electric car maker Tesla Inc said China’s Tencent Holdings Ltd had acquired a 5 percent stake in the company for $ 1.78 billion.

Privately held CEFC China will also provide Cowen with $ 175 million in debt financing, the companies said.

“This partnership will accelerate growth in Cowen’s core areas of expertise: investment banking, equities, research and investment management,” Cowen Chief Executive Peter Cohen said.

CEFC will pay $ 18 for each Cowen Class A share, representing a 29.5% premium to the stock’s Tuesday close.

The deal, which is expected to close by third quarter of 2017, will be subject to regulatory and government approvals, the companies said.

Mark Cooper

Mark Cooper

Mark Cooper is Political / Stock Market Correspondent. He has been covering Global Stock Markets for more than 6 years.


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