Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of The Michaels Companies (NASDAQ: MIK) are trading higher on Tuesday following news that it is agreed to be acquired by funds managed by affiliates of Apollo Global Management Inc.
Apollo has agreed to acquire the company in a transaction that values Michael's at an equity value of approximately $3.3 billion. The transaction values the company at $5 billion.
Apollo will commence a tender offer to acquire all outstanding shares of Michael's for $22 per share in cash under the terms of the deal. This represents a 47% premium to the closing stock price on February 26th 2021, of $15 per share.
“The Company’s impressive growth transformation, including our financial and operational performance in the unprecedented environment of the pandemic, led to an unsolicited offer to buy the company,” said James Quella, Chairman of the Michaels Board of Directors.
Ashley Buchanan, Chief Executive Officer of Michaels, said the company is “excited to enter into this new chapter together with Apollo, who shares our strategic vision for Michaels as an omnichannel retailer that offers a one-stop-shop experience for the entire Michaels community.”
The transaction is expected to close in Michaels’ first half of the company’s fiscal year.
On Wednesday, shares of Michaels are up 22.75% at $22.12, following Tuesday’s close at $18.02.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .