Merchant Banker to Buy Big MagneTek Stake:...
From Times Staff and Wire Reports
Merchant Banker to Buy Big MagneTek Stake: Kelso & Co., a private New York-based merchant banking firm, has agreed to pay up to $163.7 million for MagneTek stock in three separate transactions. After the transactions, Kelso will own between 44% and 48% of the Los Angeles-based manufacturer of electrical equipment. Kelso will pay $15 per share for 4.58 million authorized but unissued shares of MagneTek common stock. MagneTek will receive about $55 million after fees and expenses, which will be used to retire debt, the company said. The remaining stock--up to 9.5 million shares--will be purchased for $10 a share from original investors in MagneTek.
