KKR to merge with KPE

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Private equity giant KKR has announced that it will go through with a planned merger with its Amsterdam-listed fund KKR Private Equity (KPE), though a subsequent floatation on NYSE is still likely to be some way off.

Under the deal proposed on 24 June, KKR plans to keep its listing in Amsterdam, with KPE owning a 30% stake in the combined business, an increase from the original 21% proposed to KPE shareholders.

KKR had originally planned a complicated transaction that would see the business de-list its Amsterdam-listed fund KPE, before listing the combined business in New York. The move was originally planned for July 2008, but has since been postponed twice due to ongoing stock market volatility.

According to reports, KPE cannot force KKR into an NYSE listing for a year after the deal closes. If KKR has not sought a listing by then, KPE has the right to demand the combined company list on the NYSE.

The deal, which is to be backed by Black River Asset Management, Lexington Partners, Putnam Investments, RS Investments and Templeton Global Advisors, is yet to be approved by all of KPE's shareholders.