Leucadia National Corporation to Increase Stake in HomeFed Corporation to 65% in Exchange for Real Estate Holdings and Cash
February 28 2014 - 3:23PM
Business Wire
Leucadia National Corporation (NYSE:LUK)(“Leucadia”) announced
today that it has entered into a definitive agreement for HomeFed
Corporation (“HomeFed”) to acquire certain of Leucadia’s real
estate subsidiaries, investments and $18.4 million in cash (subject
to adjustment) in exchange for 7.5 million common shares of HomeFed
to be newly issued to Leucadia. At December 31, 2013, the book
value of Leucadia’s assets to be acquired by HomeFed (including the
cash) is approximately $178.5 million. Upon closing, Leucadia will
own approximately 65% of HomeFed’s outstanding common shares;
however, Leucadia has agreed to limit its voting rights such that
it will not have a majority voting interest in HomeFed.
The transaction is expected to close in March 2014 and is
subject to obtaining certain consents and other customary closing
conditions.
Richard B. Handler and Brian P. Friedman, Chief Executive
Officer and President of Leucadia, respectively, commented, “We are
pleased to increase our investment in HomeFed and believe this
exchange will optimize the value of our real estate assets.
Additionally, this consolidates our real estate focus at HomeFed
and should add value for the shareholders of both companies.”
Additional details about this transaction are available in
Leucadia’s current report on Form 8-K filed with the Securities and
Exchange Commission.
About Leucadia
Leucadia National Corporation (NYSE:LUK) is a diversified
holding company engaged through its consolidated subsidiaries in a
variety of businesses, including investment banking and capital
markets, beef processing, manufacturing, energy projects, asset
management and real estate. The Company also owns equity interests
in operating businesses that are accounted for under the equity
method of accounting, including a commercial mortgage banking and
servicing business, automobile dealerships and telecommunications
services in Italy.
Leucadia National CorporationLaura Ulbrandt, 212-460-1900
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