ESR Group divests stake in ARA Private Funds for $270 mln to reduce debt

ESR

11/03/2024 03:25

March 11 (Reuters) - Hong-Kong based asset manager ESR
group  1821.HK  said on Monday that it was selling its stake in
ARA Private Funds business in Australia, Singapore, South Korea
and the U.S. for an enterprise value of $270 million, as it
looked to reduce its debt.
    Subsidiaries of ESR inked an agreement on March 8 to dispose
their stakes in the fund to U.S.-based Claymore Encore and
Singapore-based MPSK Pte. Ltd, which is an affiliate of
Japan-based Sumitomo Mitsui Finance and Leasing, it said.
    ESR sees a gain of about $50 million from the disposal and
would primarily use the net proceeds from the transaction to
repay certain of its debt, it said. 
    In total, 22 funds are being divested in the transaction,
representing $9.8 billion in assets under management, the
company added.
    
    

 (Reporting by Adwitiya Srivastava in Bengaluru; Editing by
Rashmi Aich)
 ((Adwitiya.Srivastava@thomsonreuters.com;))