Business

Activist investors want to buy riders in a $ 4.4 billion deal

Miami-based Ryder System Inc. said in a statement that it “carefully considers and evaluates signs of interest” to determine what is in the best interests of shareholders.


Photo:

Rider system

Activist investor HG Vora Capital Management LLC offers to buy

Rider system Ltd.

With a $ 4.4 billion deal that keeps fleet management and supply chain operators private.

HG Vora owns a 9.9% stake in Ryder and, in a regulatory filing Thursday, said it was proposing to buy the remaining issued shares of the transportation and logistics company for $ 86 per share. Said. This is a 20% premium on Thursday’s closing price.

Rider’s share price, which fell 25% from late March to mid-April amid rising inflation and other signs of weakness in the U.S. economy, rose more than 18% on Friday to $ 83.77. I did. Acquisition proposal.

A Miami-based rider said in a statement that he “carefully considers and evaluates signs of interest” to determine what is in the best interests of shareholders.

Rider’s share price traded close to $ 90 per share in October 2021, but closed on April 8 as concerns over US inflation and potential weakness weighed on investors. It has fallen to the dollar.

Riders, who have been working on an ambitious expansion of the supply chain services business, have netd $ 519 million from a $ 122.3 million loss in 2020, which was hit by the Covid-19 pandemic in the supply chain last year. I made a profit.

The company recently raised its adjusted earnings per share from $ 13 to $ 14 after first-quarter revenues rose 28% year-on-year to $ 2.85 billion.

HG Vora said it would fund the acquisition with its own funds and capital from the lender’s commitment.

Rider said

Morgan Stanley

& Co. Is a financial adviser to the acquisition proposal, and Wachtell, Lipton, Rosen & Katz are legal counsel.

Write to Lydia O’Neill lydia.oneal@wsj.com

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It was published as “Investor Seeks Ryder Buyout” in the printed version on May 14, 2022.

Activist investors want to buy riders in a $ 4.4 billion deal

Source link Activist investors want to buy riders in a $ 4.4 billion deal

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