(Adds shares, background)
March 29 Brokerage Cowen Group Inc's
shares surged 19 percent on Wednesday after Chinese conglomerate
CEFC China said it agreed to acquire a stake of about 20 percent
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
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 percent 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.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb