Investing.com – Janus Capital , employer of bond guru Bill Gross, announced on Monday a merger of equals with U.K. based Henderson Group with shares of both firms shooting up more than 10%.
The combined group, Janus Henderson Global Investors, will have more than $320 billion of assets under management with a combined market capitalization of approximately $6 billion, according to the press release.
Janus explained that their strength in U.S. markets will be combined with Henderson’s strength in the U.K. and European markets “to create a truly global asset manager with a diverse geographic footprint, which closely matches the global fund management industry.”
The merger will be effected via a share exchange with each share of Janus common stock exchanged for 4.7190 newly issued shares in Henderson.
Henderson and Janus shareholders are expected to own approximately 57% and 43% respectively of Janus Henderson Global Investors’ shares on closing, based on the current number of shares outstanding.
Janus currently expects the merger to close in the second quarter of 2017, subject to requisite shareholder and regulatory approvals.
Dai-ichi Life, Janus’ largest shareholder, has already committed to supporting the merger.
Post-merger, Dai-ichi will hold approximately 9% of the combined group and announced its intention to further invest in the combined company to increase its ownership interest to at least 15%.
Shares of Henderson Group Plc (LON:HGGH) skyrocketed more than 14% in London-trade on Monday, while Janus Capital Group Inc (NYSE:JNS) jumped more than 12% in U.S. pre-market trade.