Kennedy-Wilson Holdings Inc. has entered into an agreement with two large institutional investors for a private placement of its common stock.
The Beverly Hills real estate investment and services company on Wednesday said that the deal will result in gross proceeds of about $51.4 million and broaden its shareholder base. The company will issue 4.8 million shares at $10.70 per share, 13 percent less than the closing price on Tuesday.
One of the investors is an affiliate of Toronto, Ontario-financial services giant Fairfax Financial Holdings Ltd., which in September formed a $278-million real estate investment partnership with Kennedy Wilson.
Kennedy Wilson plans to use the net proceeds from the private placement for future acquisitions and general working capital purposes. The company has a market cap of $494 million with 40 million shares outstanding.
Shares closed down 6 cents, or less than 1 percent, to $12.20 on the New York Stock Exchange.
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