March 3 (Reuters) - B. Riley Financial's RILY.O co-founder and co-CEO Bryant Riley has suspended his bid to privatise the investment bank, according to a regulatory filing on Monday.
Riley, the bank's largest shareholder, proposed an offer of $7 per share last year for the remaining shares he does not currently own, in a deal valuing the bank at $212 million.
The non-binding, take-private offer came last year amid turmoil arising from the bank's association with Vitamin Shoppe-owner Franchise Group, which drew attention from both investors and regulators.
Shares of the bank rose 5.6% in extended trading following the announcement of its preliminary Q4 results.
B. Riley participated in a management-led buyout of Franchise in 2023. Its dealings with Franchise's former CEO, Brian Kahn, came under review after Bloomberg News reported that he was implicated as a co-conspirator in a securities fraud case involving Prophecy Asset Management.
Kahn has denied the allegations, saying he was unaware of Prophecy's alleged fraudulent activities against investors.
Both an external investigation and an internal review conducted last year cleared B. Riley of any misconduct.
(Reporting by Arasu Kannagi Basil and Manya Saini in Bengaluru; Editing by Mohammed Safi Shamsi)
((Manya.Saini@thomsonreuters.com; X: manya__saini;))
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