Greenhill & Co., Inc. (NYSE: GHL) is engaged as an independent investment bank that is focused on assisting clients with mergers & acquisitions, restructurings, financing, and capital raising services. Shares of the investment bank are skyrocketing 117% through early trading on Monday, May 22, 2023. Over the past three months, Greenhill has seen average daily volume of 81,180 shares. However, volume of 1.63 million shares or dollar volume of around $24.08 million, has already exchanged hands through early trading.
Shares of Greenhill & Co. are soaring after the company announced it has entered into a definitive agreement to be acquired by Mizuho Financial Group, Inc. (NYSE: MFG). The acquisition will be executed through an all-cash deal priced at $15 per share, translating into an enterprise value of around $550 million inclusive of assumed debt.
The deal bolsters Mizuho’s investment banking expansion strategy, as it integrates Greenhill’s expertise and 27 years of advisory service history into its framework. Post-acquisition, Greenhill will function as Mizuho’s M&A and restructuring advisory arm, while retaining its global footprint, brand, leadership, and staff structure. The company operates out of 15 locations worldwide.
Scott L. Bok, the current Chairman & CEO of Greenhill, will transition into the role of Chairman of the M&A and restructuring advisory business. Co-Presidents of Greenhill, Kevin Costantino and David Wyles, will assume the roles of Co-Heads of the business. The advisory unit will be situated within Mizuho’s banking division, under the leadership of Michal Katz, Head of Banking in the Americas.
The acquisition signifies Mizuho’s commitment to broadening its investment banking platform, with Greenhill slated to become a central component of this strategic vision. Greenhill’s clients will now gain access to Mizuho’s extensive financing, capital markets, and other banking products. The change will not significantly impact the day-to-day operations of Greenhill’s employees, who will gain access to Mizuho’s expansive global client base.
The deal also entails Mizuho welcoming 370 Greenhill employees and their valuable global client relationships. Both companies are dedicated to ensuring a smooth transition for all clients and employees.
The transaction is anticipated to be finalized by the end of the year, pending approval from Greenhill shareholders, regulatory bodies, and the satisfaction of customary closing conditions. The financial advisors to the deal include Citi and Mizuho, and the legal advisors comprise Paul, Weiss, Rifkind, Wharton & Garrison LLP and Davis Polk & Wardwell LLP for Mizuho, with Houlihan Lokey as the financial advisor and Wachtell, Lipton, Rosen & Katz as the legal advisor for Greenhill.
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