B. Riley's stock rallies on report of unit sale to Oaktree
By Steve Gelsi
Shares up 33% as report surfaces of deal for two businesses housed in its Great American Group
B. Riley Financial Inc.'s stock rallied 33% on Wednesday, after Bloomberg reported the financial-services company is in exclusive talks to sell a majority stake in its Great American Group unit to Oaktree Capital Management.
B. Riley's stock (RILY) was halted for volatility during the session and rose as high as $9.05 a share before settling at $7.26 a share in recent trades - up $1.79 on the day, if it holds to close.
The Bloomberg report said the deal for the Great American Group businesses could fetch $380 million, with talks centered around the size of Oaktree's stake, which could be 51% to 55%, per Bloomberg.
An Oaktree spokesperson declined to comment on the report.
It's the second big boost to B. Riley's down-beaten stock in less than a week after the company's founder Bryant R. Riley offered to take the company private for $7 a share.
B. Riley said in February it's weighing the sale of Great American Group, which handles appraisals, valuations and lending-client relationships, as well as another business focused on industrial and wholesale solutions since February.
On Aug. 12, B. Riley said its strategic efforts around Great American Group were advancing, but it didn't provide any additional details.
Earlier this month, the bank said it was suspending its dividend partly because of the fallout from a loan it provided to help the former chief executive of Franchise Group Inc. acquire that company last year.
Even with Wednesday's gains, B. Riley's stock is still down about 66% so far this year.
Ciara Linnane contributed
-Steve Gelsi
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
08-21-24 1400ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What’s the Difference Between the CPI and PCE Indexes?
-
Micron Earnings: Great Guidance but Stock Now Looks Fairly Valued
-
August PCE Report Forecasts Show More Good News on Inflation
-
AI Stocks May Be Down, but Don’t Count Them Out
-
4 Stocks to Buy as the Fed Cuts Interest Rates
-
Markets Brief: The Uncertain Path to Neutral Interest Rates
-
What’s Happening in the Markets This Week
-
Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut
-
Our Top Pick for Investing in US Renewable Energy
-
Undervalued by 25% and Yielding 5%, This Stock Is a Buy
-
Can AI Predict Future Stock Returns?
-
The Best Energy Stocks to Buy Now
-
10 Undervalued Wide-Moat Stocks
-
Obesity Drugs: Can New Firms Take Market Share From Eli Lilly and Novo Nordisk?
-
New 4-Star Stocks
-
Intel Fair Value Left Unchanged Despite Qualcomm Takeover Talk