OneMain Holdings Inc (NYSE: OMF) is having an overwhelmingly strong start to the trading session this morning, and for good reason. It was announced early this morning that an Apollo-led group of investors have purchased a massive stake in the company. Of course, this led to excitement among investors. Today, we’ll talk about the news, what we’re seeing from OMF, and what we’ll be watching for ahead.
OMF Gains Big On Large Investment
As mentioned above, OneMain Holdings is having an incredibly strong start to the trading session this morning after announcing that a massive stake in the company has been purchased. According to the press release, a group of investors led by Apollo Global Management, LLC have purchased approximately 40.5% of the company.
Under the terms of the agreement, the group will purchase all of Fortress’ remaining equity interest in OMF for a value of $26.00 per share. The transaction, which will lead to the Apollo-led group owning about 40.5% of the company, is expected to close in the second quarter of 2018. However, the deal is still subject to customary closing conditions as well as regulatory approval. In a statement, Matthew Michelini, Partner at Apollo, had the following to say about the agreement with OMF:
“We are tremendously excited for our managed funds, together with Värde, to acquire a significant position in OneMain… As one of America’s premier consumer finance companies, we believe OneMain is exceptionally well-positioned for continued growth and innovation. We look forward to working with OneMain’s dedicated team of employees and leveraging Apollo’s resources and deep expertise in financial services as the Company embarks on the next chapter of its long history of success.”
The above statement was followed up by Jay Levine, President and CEO at OMF. Here’s what he had to say:
“We appreciate all of the support and insight that Fortress has provided as a key partner and majority investor over the last seven years of our Company’s journey… With a clear path forward to achieve our long-term objectives, we are confident that the thought leadership and expertise represented by this new investor group will be instrumental as we build further shareholder value.”
What We’re Seeing From the Stock
With news of such massive interest in OneMain Holdings and strong words of encouragement from some of the most trusted leaders in finance, it’s no surprise that investors are excited about the stock today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:25), OMF is trading at $33.09 per share after a gain of $6.50 per share (24.45%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on OMF. In particular, we’re interested in watching as the relationship builds between the company and the group of investors that just purchased this large stake. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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