(Bloomberg) -- B. Riley Financial Inc. has agreed to sell its Great American unit to Oaktree Capital for about $400 million, the Wall Street Journal reported.
B. Riley will receive about $203 million in cash; preferred equity interests in a new holding company for the appraisal and valuations unit valued at about $183 million; and a minority share of common equity interests in the holding company, the Journal said Sunday, citing people with knowledge of the matter.
A spokesperson for B. Riley declined to comment to Bloomberg on the report.
B. Riley has been seeking to raise cash by selling core assets as it tries to cope with a roughly $2 billion debt load, write-offs on soured investments and a US Securities and Exchange Commission investigation into its business.
The embattled broker-dealer and investment firm confirmed to Bloomberg last month that it was in talks to sell a majority stake in Great American. Oaktree was in discussions with the firm about Great American, Bloomberg reported in August.
The deal for Great American, which has been owned by B. Riley since 2014, is expected to close before the end of the year, the Journal said.
©2024 Bloomberg L.P.