The transaction is expected to take place within the next 120 days and will cost Stilwell approximately $603 million. The firm currently has cash and credit lines to cover the transaction but is also exploring alternative financing arrangements, the company said.
With the sale of his remaining shares, Bailey will lose his contractual management and board selection rights as head of Janus but will remain as the firms CEO and board director. The decision to sell his remaining shares is a "prudent economic decision," and has no bearing on the day-to-day operation of Janus, Bailey said.
The additional 600,000 shares will give the firm "flexibility" in designing executive stock incentive packages, said Landon H. Rowland, CEO of Stilwell Financial.