euro adhoc: Fortune Management Inc.
Mergers - Acquisitions - Takeovers /
-Fortune has acquired the business of HLSP Holdings Corp.
-New Private Equity Division "FHLSP Private Equity Group, Inc." established
-Paul Bagley becomes new Chairman of the Boa
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
08.07.2005
Zug/Switzerland, July 8, 2005 - The board of Fortune Management Inc., (General Standard, ISIN USU026281027, WKN: A0BLYY) has - with resolution on July 7, 2005 and following the Letter of Intent on June 2, 2005 - decided to acquire the private equity business and managing principals of HLSP Holdings Corp., a member of The Stone Pine Group of Companies, Denver, in exchange for the issuance of 33,584,600 restricted shares of Fortune common stock. Primarily, HLSP Holding Corp. comprises of a pipeline of private equity transactions in differing stages of negotiation. Such transactions include the acquisition of a number of private equity management firms in various countries as well as an agreement with a major international investment bank for the underwriting of a substantial new private equity fund.
HLSP will integrate its business into Fortune by creating a new private equity division which will operate under the name "FHLSP Private Equity Group, Inc.". (FHLSP). FHLSPs principal purpose will continue to be the consolidation of private equity management companies on an international basis. For Fortune, this acquisition represents a consequent expansion and diversification of its core roll-up strategy into an additional asset management category with a global reach. The combination of both industry roll-up strategies is expected to increase and expedite the volume of funds under management.
The expansion of Fortune Management Inc. is also reflected by the new configuration of the management and board of directors. Ulrich Beckmann left the Board of Directors to focus on his task as Executive Chairman of TMS-ComTelco. He was replaced by Paul Bagley, who will take over the position of Chairman. The management is enlarged by Jack Takacs, President, and Hermann Seiler, COO Private Equity.
The new board and management team therefore consists of:
Paul Bagley, Chairman Michael Dieckell, Member Michael Kloter, Member
René Müller, CEO Jack Takacs, President Jürg Briner, CFO Rolf Schneebeli, COO Asset Management Hermann Seiler, COO Private Equity Mark Kübler, Corporate Secretary
Fortune now enters a one months transition period in which the organization and internal procedures are being harmonized.
End of ad hoc release
Comments on the acquisition
Michael Dieckell of Fortune says: "HLSP and its executives bring to Fortune a wealth of experience and an unparalleled network in the private equity industry. Working towards the same goals of acquiring asset managers we are able to integrate HLSPs business into our organisation and processes whilst protecting the integrity of both initiatives. Hence broadening our economic base and accelerating the execution of our business plan."
Paul Bagley of HLSP says: "Over the past five years the private equity management business has become global. The opportunities we intend to pursue in our new affiliation with Fortune will reflect this trend. We look forward to working with Rene Müller and his team to extend Fortune's acquisition strategy into the very dynamic private equity area."
CV of Paul Bagley, new Chairman of the Board of Fortune
Mr. Paul Bagley is a founding partner of Stone Pine Companies and served on the board of Hamilton Lane Advisors, Philadelphia. He is Chairman and CEO of FCM Fiduciary Management Co. and Consolidated Capital of North America, Inc. and Director of Hamilton Lane Private Equity Partners L.L.C., listed in Dublin. For over 30 years, Mr. Bagley has been involved in investment banking activities. He held senior positions at Shearson Lehman Hutton Inc. and its predecessor, E.F. Hutton & Company Inc. He served as Chairman of the Board of Directors of Silver Screen Management, Inc., International Film Investors, Inc., America First and FFCA, and as founding Chairman of Silver Screen Partners, and as Director of Hollis-Eden Pharmaceuticals, Inc. and LMC Corporation. Mr. Bagley has a BS from the University of California, Berkeley and an MBA from the Harvard Business School.
CV of Jack P. Takacs, new President of Fortune and CEO of FHLSP
Mr. Takacs is a partner and managing director of The Stone Pine Companies and HLSP. He directed the activities and strategy in the areas of structured finance and private equity for over ten years. During his tenure, he was also the CEO of Pacific USA Corp. and Pacific Holdings, the US investment division of Pacific Electric Wire & Cable Co. Ltd (a Taiwanese industrial conglomerate). Before that he served as head of the investment and principal transaction business of GKM, a NYSE investment banking firm and was the founder and principal of various real-estate, equipment and auto-finance companies.
CV of Hermann Seiler, new COO of Fortune´s Private Equity Division and President of FHLSP
Mr. Seiler was a long time Executive of Deutsche Bank, mainly serving in different capacities in Frankfurt, New York and London, in the investment banking area. He was founding member of Deutsche Banks new project finance business, instrumental for arranging over USD 1 bn in project financings. Mr. Seiler built Deutsche Banks worldwide IT organisation for the Investment Bank, directly responsible for annual budgets of over USD 1 bn. He was also instrumental in arranging several Private Equity investments in Private Equity funds as well as managing direct investments in new businesses. He also developed Deutsche Bank`s strategy for the creation of the Transaction Bank. He served on various Boards such as the Technology Committee of Deutsche Boerse, Deputy Chairman of the Board of GZS and Chairman of the Board of Pago. He was instrumental in assisting the launch of Deutsche Terminbörse as well as of the electronic trading system XETRA. Mr. Seiler has a summa cum laude degree in Mathematics and Quantum Mechanics from the TH Darmstadt.
Profile of Fortune Management Inc.: FORTUNE Management Inc., Zug, Switzerland, focuses on building a network of independent asset management companies, mainly in Switzerland, and private equity managers on a global basis. It has subsidiaries in the Swiss cities of Zug, Zurich and Geneva, as well as in Dubai. FORTUNE aims to acquire majority stakes in such companies. These asset managers are then integrated into the Group, thereby relieving them of as much of their middle office administrative workload as possible. The resulting economies of scale contribute to improving the cost-income ratio. Research and portfolio management support is provided with a view to enhancing risk-adjusted returns for investment clients. The asset managers relationships with their clients and custodians remain intact, and the firm continues to trade under its established name.
FORTUNE Management Inc. was created from the former ComTelco International Inc. at the end of 2003 following a strategic reorientation. Its stock (ISIN: USU 026281027) is traded on the regulated market (General Standard segment) of the Frankfurt stock exchange.
end of announcement euro adhoc 08.07.2005 02:58:38
Further inquiry note:
Fortune Management Inc.
Christian Hillermann
Investor Relations Manager
Tel.: +49 40 / 23608-897
Fax: +49 40 / 23608-500
Email: ir@fortune-management.com
Branche: Financial & Business Services
ISIN: USU026281027
WKN: A0BLYY
Börsen: Frankfurter Wertpapierbörse
Berliner Wertpapierbörse
Baden-Württembergische Wertpapierbörse
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