March 30, 2017

China Energy Company Limited provides $100 million equity investment and $175 million debt financing for Willkie client Cowen Group, Inc., a diversified financial services firm. 

On March 29, Willkie client Cowen Group, Inc. and China Energy Company Limited (CEFC China) announced the execution of a Stock Purchase Agreement and an Investor Rights Agreement pursuant to which CEFC China, through an offshore entity under its control, would acquire approximately 19.9% of Cowen’s outstanding common shares for an aggregate purchase price of approximately $100 million. In addition to the equity investment, CEFC China has also agreed to provide Cowen with $175 million in debt financing.

CEFC China is the largest private company in Shanghai, the seventh largest private company in China and the 229th largest company listed on the Fortune Global 500. Cowen Group is a diversified financial services firm that provides alternative asset management, investment banking, research, and sales and trading services. In recent years, Willkie represented Cowen in several acquisitions, including Conifer Securities, Concept Capital Markets, Dahlman Rose, Algorithmic Trading Management and its 2016 purchase of certain businesses from CRT Capital, among others.

The current deal was handled by partners David Boston, Laura Delanoy and Joshua Deason, and associates Alexis Anzelone, Andrew Prodromos, Christina Castedo, Justin Sommerkamp and David Axelson.