Kobus Louw/E+ via Getty Images
Ares Management (NYSE:ARES) is in advanced talks for the acquisition of real estate investment firm GLP Capital Partners’ non-China operations, according to a Friday media report.
Los Angeles-based Ares (ARES) and GCP are in the final stages of negotiating a transaction that could be finalized within the next few weeks, Bloomberg reported, citing people familiar with the matter. GCP has some $66B of assets under mmanagement outside of China.
The companies have been negotiating a deal that includes an upfront payment of about $3.5B, some of the people added, with the total value potentially reaching around $5B over time, contingent upon meeting certain targets. Ares (ARES) is exploring whether to use a combination of cash and stock to fund the acquisition.
Terms of a deal are still subject to change, and the timing of any announcement may potentially be delayed, the article said, adding talks are ongoing and there’s no guarantee they will drive a deal.
Ares (ARES) shares gained 1.1% in late morning trading.
In June, Bloomberg reported that Ares (ARES) is evaluating a possible combination with GCP.
