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Oaktree nears deal for majority stake in two B Riley units, Bloomberg reports

Published 08/21/2024, 12:24 PM
Updated 08/21/2024, 12:26 PM
© Reuters. FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) - Asset manager Oaktree Capital is in exclusive talks to acquire a majority stake in two businesses owned by investment bank B. Riley, Bloomberg News reported on Wednesday.

Oaktree is discussing buying a stake of 51% to 55% in B. Riley's appraisal and valuation services arm and its retail, wholesale and industrial solutions unit, entities formerly known as Great American Group, the report added, citing people with knowledge of the matter.

A deal, which could be announced as soon as next week, values the units at around $380 million, the report said.

Oaktree Capital and B. Riley did not immediately respond to Reuters requests for comment.

© Reuters. FILE PHOTO: U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

Shares in the bank erased losses from earlier in the session and were last up 12% in afternoon trading.

Last week, B. Riley's co-founder and co-CEO Bryant Riley had offered to buy the bank, following a stock rout triggered by the expectations of a second-quarter loss.

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