Private Equity Firms Tpg Pag Selling Shares Cushman Wakefield Worth Us31073 Mil
The real estate advisory services firm Cushman & Wakefield (C&W) is seeing a change in its ownership as Private equity firms TPG and PAG Asia Capital, along with their affiliated funds, are divesting all their shares in the company.
According to a prospectus filed on May 20 with the Securities and Exchange Commission, TPG and PAG are selling over 26.5 million ordinary shares of C&W. Based on the closing share price of $11.72 per share, the total value of the shares amounts to US$310.73 million.
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The shares will be sold through an underwritten public offering with JP Morgan as the sole underwriter. However, C&W will not receive any proceeds from the offering, as announced by the company on May 20.
As of May 17, 2024, TPG held about 7.5% of C&W’s total outstanding shares, while PAG held approximately 4.1%. This move marks the end of a decade-long partnership between TPG and PAG, who, along with Ontario Teachers’ Pension Plan, acquired London-based company DTZ for US$1.215 billion in 2014. The following year, DTZ merged with C&W, backed by the consortium of TPG, PAG, and Ontario Teachers’ Pension Plan, for US$2 billion.
This acquisition and merger propelled C&W to become one of the largest players in the commercial real estate services sector, alongside NYSE-listed companies CBRE and JLL.
In its initial public offering on the NYSE on August 1, 2018, C&W offered 45 million ordinary shares at US$17 per share. On May 24, 2024, its share price closed at US$10.79, with the stock market closed for Memorial Day on May 27.
In the first quarter of 2024, C&W reported a revenue of nearly US$2.185 billion, a 3% decline from the previous year. However, its net loss narrowed to US$28.8 million from US$76.4 million the year before.
In contrast, CBRE recorded a revenue of US$7.94 billion in the first quarter of 2024, a 7.1% year-on-year increase, with a net income of US$126 million, up 8% from the previous year. JLL’s revenue during the same period was US$5.12 billion, a 9% year-on-year increase, with a net income of US$66.1 million, a significant improvement from a loss of US$9.2 million in the previous year.
In other news, property giant CDL has announced its plans to sell its freehold strata units at Cititech Industrial Building and Citilink Warehouse Complex for a total of $149 million.