An update from AllianceBernstein (AB) is now available.
AllianceBernstein Holding, AllianceBernstein L.P., and Societe Generale have finalized their joint venture, with SocGen holding a majority in the international segment and AB in North America. The $304 million cash equalization payment from SocGen to AB, due to AB’s larger business contribution, will see AB recognize a second-quarter gain. This strategic move is expected to boost AB’s adjusted operating margin by 200-250 basis points annually and the received funds will be used to lessen AB’s debt. While the transaction may slightly dilute AB’s GAAP Earnings Per Unit, it will not affect the Adjusted Earnings, maintaining a neutral impact on their Adjusted EPU.
See more data about AB stock on TipRanks’ Stock Analysis page.