Closing of the acquisition by Apollo Funds of approx. 67% stake in RDM group

Rhea-AI Summary

Apollo Global Management (NYSE: APO) announced plans to close its acquisition of a majority stake in Reno De Medici S.p.A. (BIT: RM/BME: RDM) by Q4 2021, pending customary closing conditions. The Apollo Funds will acquire approximately 67% equity ownership from Cascades Inc. and Caisse de dépôt et placement du Québec for EUR 1.45 per share. Following the closing, Apollo will initiate a mandatory public tender offer for remaining RDM shares aiming for delisting. As of June 30, 2021, Apollo managed around $472 billion in assets.

Positive

• Acquisition of 67% stake in RDM can enhance market position.
• Strategic intent to launch a mandatory public tender offer may streamline operations.
• Potential to consolidate and drive synergies post-acquisition.

Negative

• Acquisition subject to antitrust approvals could delay closing.
• Mandatory tender offer could raise concerns about shareholder dilution.

NEW YORK, Sept. 26, 2021 (GLOBE NEWSWIRE) -- Apollo Global Management, Inc. (NYSE: APO) (together with its consolidated subsidiaries, “Apollo”) today announced that the closing of the acquisition of a majority stake in Reno De Medici S.p.A. (“RDM” or the “Company”) (BIT: RM/BME: RDM), which is subject to customary closing conditions, is expected to take place by Q4 2021.

As announced on July 5, 2021, certain funds managed by Apollo’s affiliates (the “Apollo Funds”) have entered into definitive agreements to acquire approx. 67% equity ownership in RDM from the Company’s top two shareholders, Cascades Inc. (TSX: CAS) and Caisse de dépot et placement du Québec, for EUR 1.45 per share.

Since not all of the necessary antitrust authorizations to which the closing of the transaction is subject have been issued yet, the closing is currently expected to occur in the fourth quarter of 2021.

Upon closing, the Apollo Funds will launch a mandatory public tender offer on all the remaining RDM shares (including all the ordinary shares deriving from the conversion of the convertible savings shares of the Company, to the extent such shares are converted prior to the expiration of the mandatory public tender offer), with the aim to de-list the Company.

About Apollo
Apollo is a high-growth, global alternative asset manager. We seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid and opportunistic. Through our investment activity across our fully integrated platform, we serve the retirement income and financial return needs of our clients, and we offer innovative capital solutions to businesses. Our patient, creative, knowledgeable approach to investing aligns our clients, businesses we invest in, our employees and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2021, Apollo had approximately $472 billion assets under management. To learn more, visit www.apollo.com.

Contacts:
For Investors:
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

For Media:
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

 

FAQ

When is Apollo's acquisition of Reno De Medici expected to close?

The acquisition is expected to close in Q4 2021, pending customary closing conditions.

What percentage of Reno De Medici is Apollo acquiring?

Apollo is acquiring approximately 67% equity ownership in Reno De Medici.

What is the share price for Apollo's acquisition of Reno De Medici?

Apollo will acquire shares at EUR 1.45 each.

What follows the closing of Apollo's acquisition of Reno De Medici?

Apollo will launch a mandatory public tender offer for all remaining shares.

What are the implications of Apollo's acquisition on Reno De Medici's stock?

The acquisition may lead to delisting and consolidation of operations.