Status: Upcoming New/Filing
Acquirer: China Energy Company Limited (China)
Value: Investment of approx. US$100 million
Industry: Financial Services
On March 29, 2017, Cowen Group, Inc., a diversified financial services firm, and China Energy Company Limited (“CEFC China”), a private enterprise with energy and financial services as its core business (see Corporate Profile page of CEFC website), announced that they have executed a Stock Purchase Agreement and an Investor Rights Agreement “pursuant to which CEFC China, through an offshore entity under its control, would acquire, subject to receipt of governmental approvals and satisfaction of other customary closing conditions, a common stock interest representing approximately 19.9% of Cowen’s outstanding common shares as of closing for an aggregate purchase price of approximately $100 million.” (Cowen Group Press Release, Cowen and CEFC China Announce Strategic Partnership, Mar. 29, 2017.) A Committee on Foreign Investment in the United States (CFIUS) clearance is a condition of the Stock Purchase Agreement, which requires a draft notification filing with CFIUS “within 20 Business Days” of execution. (Section 5.02, 6.01(c), Stock Purchase Agreement, Ex-10.1 to Form 8-K, Mar. 30, 2017, SEC Filing.) CEFC China has stated publicly that “[t]he strategy of the Company [is] to expand international economic cooperation in the energy sector and establish a well-organized international investment bank and an investment group.” (Corporate Profile page of CEFC website).