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
Investors looking for more of the latest stock market news will want to stick around!
We’ve got all of the hottest stock news traders need to know about on Friday! Among that is what has shares of Rivian (NASDAQ:RIVN), Tesla (NASDAQ:TSLA) and Lordstown Motors (NASDAQ:RIDE) stock moving today. You can learn all about this news at the links below!
More Friday Stock Market News
- RIVN Stock Alert: Ford Just Gave Up on EV Startup Rivian
- Why Is Tesla (TSLA) Stock Up 5% Today?
- RIDE Stock Alert: Lordstown Motors Seeks to End Agreement With Workhorse
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
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.
