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Thursday, September 25, 2014

Singapore GIC becomes majority owner in UK firm RAC with Carlyle, (NASDAQ: CG)

Singapore sovereign wealth fund GIC said on Thursday it had bought a stake in RAC Ltd, Britain's second largest roadside recovery firm, from private equity fund Carlyle Group LP for an undisclosed amount.GIC did not specify the size of the stake it had bought, but said it and Carlyle will now jointly own a majority stake in RAC, with the company's management holding the remaining stake.Carlyle Group bought RAC Ltd in 2011 for 1 billion pounds ($1.63 billion). A person familiar with the GIC transaction said RAC now had an enterprise value, including debt, of around 2 billion pounds."Both Carlyle and GIC believe that RAC has a clear strategy with significant growth potential," Andrew Burgess, a partner in Carlyle Group, said in a joint statement.

Shares of CG fell by 0.3% or $-0.09/share to $29.86. In the past year, the shares have traded as low as $25.48 and as high as $39.38. On average, 357666 shares of CG exchange hands on a given day and today's volume is recorded at 729833.