Consortium-Backed By Billionaires Boaz Weinstein, Bill Ackman Revise Sculptor Capital Bid As Board Shows Concern

Author: Vandana Singh | September 07, 2023 07:49am

American hedge fund manager and founder of Saba Capital Management, Boaz Weinstein and his consortium of bidders have updated their purchase offer for Sculptor Capital Management Inc (NYSE:SCU) in response to concerns outlined by the board's special committee in a recent proxy filing.

This consortium, which includes billionaires such as Bill Ackman, Marc Lasry, and Jeff Yass, increased its offer by 51 cents per share the previous week. 

While Weinstein's offer remains at $12.76 per share, it has strengthened its equity commitments, removed risks associated with debt financing, and increased the damages it would pay if the transaction fails to materialize.

Sculptor had previously accepted a lower bid of $11.15 per share, approximately $639 million, from Rithm Capital Corp (NYSE: RITM) in July. 

As of an August 30 filing, Sculptor still preferred Rithm's offer, Bloomberg noted, citing various concerns regarding the higher bid from Weinstein's group.

It remains uncertain whether the revised proposal will influence Sculptor.

Former Sculptor CEO Rob Shafir, who owns 6.2% of the firm's Class A common stock, stated that the revised offer is "clearly superior" to the Rithm deal. 

The higher bid is also endorsed by Dan Och, the founder of the firm formerly known as Och-Ziff, and four other former executives.

Sculptor, under the leadership of CEO Jimmy Levin, has expressed reservations about Bidder J's proposal, in part due to concerns that clients may not accept the new leadership choice. 

While Rithm intends to retain Levin, Weinstein's group has indicated in a proxy filing that they would replace him as chief investment officer.

Price Action: SCU shares closed at $11.85 on Wednesday.

Posted In: RITM SCU