Ruby Tuesday, Inc. (NYSE:RT) stock was flying high on Monday on news that it is being bought by private equity firm NRD Capital.
The deal will have NRD Capital taking Ruby Tuesday, Inc. private is a deal worth $335 million. This will have it paying $2.40 for each share of RT stock. The offer represents a 21% premium over the stock’s closing price on Oct. 13, 2017. It is also a 37% increase from its closing price on March 13, 2017, which was the last day of trading before RT announced it was exploring strategic alternatives.
Ruby Tuesday, Inc. says that the deal has already been given unanimous support from its Board of Directors. Stephen Sadove, the Non-executive Chairman of RT, says that the Board of Directors looked over several deals. They believe that this one will bring the most value to holders of RT stock.
“As a private company, we will be able to take a long-term view on Ruby Tuesday, allowing us to make an investments in people, product, and customer experience, without public company constraints,” Aziz Hashim, founder of NRD Capital, said in a statement. “This approach will enable us to reward everyone involved in our success, in addition to our investors.”
Ruby Tuesday, Inc. says that it is expecting the deal with NRD Capital to close in the first quarter of 2018. However, it still needs to complete some customary closing conditions. This includes getting approval for the deal from shareholders of RT stock.
RT stock was up 18% as of Monday morning, but is down 26% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.