AlerisLife (NASDAQ:ALR) stock is taking off on Friday following news of a $43.8 million deal with ABP Acquisition.
That deal has ABP Acquisition agreeing to acquire AlerisLife for $1.31 per share in cash. That represents an 85% premium to the stock’s average trading price of 71 cents over the last 30 trading days.
ABP Acquisition intends to use a tender offer to acquire AlerisLife. That requires “a number of shares being tendered in the tender offer that, together with the shares owned by ABP and its affiliates, represent a majority of ALR shares.” Investors will note that ABP Acquisition and its affiliates currently hold a 6.1% stake in ALR stock.
The Board of Directors at AlerisLife has already approved the acquisition deal. Also, a special committee made up of independent directors has given unanimous support to the agreement.
What Else ALR Stockholders Need to Know
First up, the tender offer is set to start as soon as possible. If all goes well, the deal should close in the first quarter of 2023.
ALR stock is seeing heavy trading today thanks to the acquisition news. As of this writing, more than 3 million shares have changed hands. That’s a massive jump from the daily average trading volume of about 105,000 shares.
ALR stock is up 58% as of Friday morning
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.