The deal will have Liberty Interactive QVC Group acquiring the remaining 62% of HSN, Inc. shares that it doesn’t already own. This will make it so that HSNI will become a wholly-owned subsidiary of QVCA.
Liberty Interactive QVC Group will be paying $40.36 per share for HSN, Inc. stock. This represents a premium of 29% to HSNI’s closing price on July 5, 2017, which was the last day before the deal was announced.
The total value of the deal comes to $2.6 billion. Holders of HSNI stock will receive 1.65 shares of QVCA stock for each HSNI share that they own. This will have it distributing 53.4 million QVCA shares to holders of HSNI stock.
Liberty Interactive QVC Group says that it expects the deal for HSN, Inc. to reach completion in the fourth quarter of 2017. The deal will need approval from regulators, the Federal Communications Commission, and the majority of HSNI shareholders.
“Joining the QVC Group will give us instant access to global consumer markets, a leadership team with deep expertise and a global perspective, and the opportunity to further strengthen our content-based brand portfolios in a changing retail landscape,” Arthur Martinez, HSN, Inc.’s Chairman of the Board of Directors, said in a statement.
HSNI stock was up 27% and QVCA stock was down slightly as of noon Thursday. HSNI stock is up 15% year-to-date and QVCA stock is up 21% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.