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BUZZ-B. Riley rises on talks to sell majority stake in Great American Group unit

Reuters · 09/09 11:19

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BUZZ-B. Riley rises on talks to sell majority stake in Great American Group unit

** Shares of investment bank B. Riley Financial RILY.O rise 0.8% to $5.42 premarket

** RILY says it has entered exclusive with an unnamed asset manager to sell a 53% stake in its Great American Group business

** Proposed transaction values the business at $380 mln, including debt

** Co has also entered into a -binding commitment for debt financing of B. Riley and bebe stores businesses, which could generate about $236 mln in proceeds

** RILY expects $410 mln in proceeds from both transactions, which will be mainly used to cut debt owed to Nomura to about $125 mln by 2024 end

** The Los Angeles, California-based bank has been in a turmoil after it suspended its dividend last month and warned of a Q2 loss in the range of $435 mln to $475 mln

** As of previous close, RILY shares down 74.4% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))

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