EQT has completed the acquisition of Hong Kong-based Baring Private Equity Asia, in a cash and stock transaction that was worth €6.8 billion when first announced in March, according to a report by Bloomberg.
The deal, which is the biggest ever takeover of a private equity firm by another in the sector, will see the Asia private equity teams of the two firms combine to create BPEA EQT. Baring’s real estate business, meanwhile, will be integrated into Swedish investment firm EQT.
The deal generates much-needed fees for advisers including Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co.
In a year when the volume of global transactions has dropped significantly, the transaction generates much-needed fees for advisers including Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co. Morgan Stanley advised EQT, while Goldman and JPMorgan advised BPEA.
EQT is financing the deal with 191.2 million new ordinary shares and €1.6 billion in cash. Data completed by Bloomberg reveals that the shares have fallen by about 35% since the transaction was first announced.
Last month, BPEA closed its eight private equity fund with $11.2 billion in total capital commitments, far in excess of its initial target size of $8.5 billion.
