Shares of Ryder System soared after the transportation and logistics company, best known for its fleet of commercial rental trucks, emerged as the target of a takeover attempt by a private equity company.
HG Vora Capital Management, headquartered in New York City, filed a 13-D form with the Securities and Exchange Commission Friday morning that said it was proposing to acquire all the shares of Ryder at a price of $86 per share. According to the filing, that represents a 24.8% premium to the 30-day trailing average of the stock and a 20.3% premium to the closing price of Ryder on Thursday.
Ryder’s shares surged on the news. Ryder stock jumped $12.50 per share to $84, an increase of 17.50%, slightly less than the HG Vora Capital offering price.
Ryder’s market capitalization is approximately $3.65 billion.
In its filing, Vora Capital said it believes Ryder’s shares are undervalued. Prior to Friday’s surge, Ryder’s stock had declined to $71.48 per share from a November high of $87.08.
In a note, Stifel analysts wrote that HG Vora’s offer for Ryder was surprising, adding that they don’t currently expect competing offers from a strategic buyer.
On Thursday, when stocks were plunging, we said that it was time for private equity to put some of their $4 trillion in dry powder to use.
Stocks on verge of bear market - what is PE waiting for? $4 trillion in LBO dry powder
— zerohedge (@zerohedge) May 11, 2022
It appears they plan on doing just that.
Shares of Ryder System soared after the transportation and logistics company, best known for its fleet of commercial rental trucks, emerged as the target of a takeover attempt by a private equity company.
HG Vora Capital Management, headquartered in New York City, filed a 13-D form with the Securities and Exchange Commission Friday morning that said it was proposing to acquire all the shares of Ryder at a price of $86 per share. According to the filing, that represents a 24.8% premium to the 30-day trailing average of the stock and a 20.3% premium to the closing price of Ryder on Thursday.
Ryder’s shares surged on the news. Ryder stock jumped $12.50 per share to $84, an increase of 17.50%, slightly less than the HG Vora Capital offering price.
Ryder’s market capitalization is approximately $3.65 billion.
In its filing, Vora Capital said it believes Ryder’s shares are undervalued. Prior to Friday’s surge, Ryder’s stock had declined to $71.48 per share from a November high of $87.08.
In a note, Stifel analysts wrote that HG Vora’s offer for Ryder was surprising, adding that they don’t currently expect competing offers from a strategic buyer.
On Thursday, when stocks were plunging, we said that it was time for private equity to put some of their $4 trillion in dry powder to use.
Stocks on verge of bear market – what is PE waiting for? $4 trillion in LBO dry powder
— zerohedge (@zerohedge) May 11, 2022
It appears they plan on doing just that.
