BALTIMORE, Dec. 19, 2016 /PRNewswire/ -- Legg Mason
Inc., (NYSE:LM), today announced an agreement with Shanda Group,
Legg Mason's largest shareholder,
that includes a commitment to appoint Tianqiao Chen, Chairman and
CEO of Shanda Group and a well-known technology entrepreneur in
Asia, and Robert Chiu, President of Shanda Group and an
executive with 25 years of international financial and technology
experience, to its Board of Directors by June 1, 2017. Mr. Chen will be joining the
Board as the Vice Chairman. In that capacity, Mr. Chen will
lead Shanda's efforts to assist Legg
Mason in technology innovation, as well as business
development and brand building in Asia, and China in particular. It is expected that Mr.
Chen will also sit on the Nominating and Corporate Governance
Committee, subject to satisfying applicable independence
requirements under applicable law or listing rules.
The agreement contemplates Shanda Group purchasing additional
shares of Legg Mason common stock in
the future to increase its investment up to 15% of outstanding
common stock, subject to market conditions and other
considerations. The agreement also provides that Shanda Group
will not acquire more than 15% of the outstanding common stock or
initiate certain transactions or actions including proxy
solicitations during a three year period.
After spending a significant amount of time with Legg Mason's investment affiliates, Shanda Group
agreed to invest at least $500
million in investment products with Legg Mason affiliates. Shanda Group has
also pledged to make a meaningful contribution to Legg Mason's charitable foundation.
Shanda Group is Legg Mason's
largest shareholder, owning approximately 10% of the Company's
outstanding common stock. Shanda Group is a global private
investment firm with a long term investment horizon, seeking
investments in industry leaders and truly innovative technologies
and business models. It makes investments across public
market equity, fixed income and commodities, private equity and
venture capital, and real estate.
Legg Mason will continue to work
closely with Shanda Group to leverage its expertise in technology
and to access retail and institutional markets in Asia, two important focus areas of growth for
Legg Mason.
Joseph A. Sullivan, Chairman and
CEO of Legg Mason, said: "We have
gotten to know the team at Shanda Group over the last eight months,
and believe Mr. Chen and Mr. Chiu will be excellent resources for
Legg Mason as members of our Board
of Directors. As we work to enhance the Company's ability to serve
our global investors, we find their expertise in important areas of
growth to be invaluable. Shanda's plan to invest a
significant amount of capital in the investment products of
Legg Mason affiliates demonstrates,
in a very meaningful way, Shanda's conviction in Legg Mason."
Tianqiao Chen, Chairman and CEO of Shanda Group, said:
"Since investing in Legg Mason, we
have strongly supported its strategy of offering investors
diversified choices for investment strategies, product types,
geography, and client access that positions it for future
growth. The management teams of Legg
Mason and its investment affiliates have also impressed us
with their investment expertise and proven results.
Particularly as technology becomes an important component of
serving clients, we believe that we can offer Legg Mason a helpful perspective with our own
experience and resources. Shanda believes Legg Mason is well-positioned to enjoy continued
success, and is delighted to have the opportunity to further
strengthen our partnership."
Background – Tianqiao Chen
Tianqiao Chen is the founder of Shanda Group. Widely
recognized as a successful and innovative entrepreneur globally, he
has been credited with having pioneered and built the online game
and online literature industries in China. Over the past
17 years, three of Shanda Group's subsidiaries were listed on
NASDAQ and one on KOSDAQ. Shanda Group has now been transformed
into a global investment company, wholly-owned by Mr. Chen and his
family.
Mr. Chen has been appointed to a number of government boards,
most notably the National Committee of the Chinese People's
Political Consultative Conference where he has been a national
member since 2008. He holds a Bachelor of Arts degree in Economics
from Fudan University where he is also a member of the Board of
Directors. Mr. Chen and his wife Chrissy are active
philanthropists. They have been working closely with leading
universities and research institutions worldwide to sponsor,
support and develop fundamental research programs on brain science,
in addition to their years of charitable contributions to support
child education, medical and healthcare programs, disaster relief
and other social causes in China.
Background - Robert
Chiu
Robert Chiu joined Shanda Group
in 2012 as the Group President with overall managerial
responsibilities of all business units. In addition, Robert
is deeply involved in the Group's philanthropic effort. He
was also the Chairman and CEO of Cloudary Corporation, the world's
largest Chinese-language original content platform between 2012 and
2014. Robert has played a pivotal role in the Group's
transformation to become a global investment company.
Prior to Shanda, Robert served as Managing Director and Head of
Asia Pacific Technology, Media and Telecom Investment Banking at
Bank of America Merrill Lynch. He has held several senior
management positions at Morgan Stanley, Goldman Sachs and Nomura in
their New York, Menlo Park and Hong
Kong offices. Robert began his career at IBM in 1992.
Robert currently serves as a Vice Chairman of the Copyright Society
of China. In 2014, he was named the 2014 Economic Leader of
China by China Economic Development Forum. Robert holds a
Master of Management degree from the Kellogg Graduate School of
Management, Northwestern University, with a Fulbright scholarship
in 1998.
About Legg Mason
Legg Mason is a global asset
management firm with $707 billion in
assets under management as of November 30,
2016. The Company provides active asset management in many
major investment centers throughout the world. Legg Mason is headquartered in Baltimore, Maryland, and its common stock is
listed on the New York Stock Exchange (symbol: LM).
About Shanda Group
Shanda Group is a global private investment group founded in
1999. The group began as a pioneer in the online game industry and
grew into one of the largest Internet conglomerates in China. Shanda Group has been transformed into
a global professional investor in recent years with a strong sector
focus in financial services, healthcare services, real estate and
cutting edge technologies. Shanda Group is headquartered in
Singapore with offices in
Shanghai, Beijing, Hong
Kong and Menlo Park.
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SOURCE Legg Mason, Inc.