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Jeffrey Solomon, president of Cowen Group Inc.
Brokerage Cowen Group shares surged 19 % on Wednesday soon after Chinese conglomerate CEFC China explained it agreed to purchase a stake of about twenty % in the U.S. corporation for $one hundred million.
The offer, the latest in a series of investments by Chinese companies in U.S. corporations, will also give the CEFC the proper to appoint a few administrators to theNew York-dependent company’s board.
CEFC’s announcement comes a working day soon after U.S. electric motor vehicle maker Tesla explained China’s Tencent Holdings experienced acquired a 5 % stake in the corporation for $one.seventy eight billion.
Privately held CEFC China will also supply Cowen with $175 million in credit card debt financing, the corporations explained.
“This partnership will speed up advancement in Cowen’s core parts of expertise: financial commitment banking, equities, investigation and financial commitment administration,” Cowen Chief Executive Peter Cohen explained.
CEFC will spend $eighteen for each individual Cowen Class A share, symbolizing a 29.5 % high quality to the stock’s Tuesday close.
The offer, which is envisioned to close by the 3rd-quarter of 2017, will be subject to regulatory and governing administration approvals, the corporations explained.