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Mitsubishi HC Capital To Acquire CAI International (CAI), Stock Surges

Updated: 18 Jun 2021

CAI International's (NYSE: CAI) share price is rallying premarket on Friday after announcing that Mitsubishi HC Capital (MHC) will acquire the company for approximately $1.1 billion.

The all-stock transaction will see MHC pay $56 per share for the transportation finance firm, consisting of $104 million of preferred stock and $986 million of common stock.

Timothy Page, President and CEO of CAI, remarked commented: “Over the past year, we have delivered on the commitment we made to our shareholders to return CAI’s focus to its core container leasing business.

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“Executing on that strategy put CAI in position to partner with MHC, a strong, quality, global financial organization. Going forward, the combination of CAI and MHC will allow MHC to leverage CAI’s global marketing and operational expertise, and along with MHC’s existing container investments will provide enhanced value to MHC’s container leasing customers, suppliers, employees, and other stakeholders.

“After the closing of the transaction, MHC expects to retain CAI’s existing management team and employees. CAI’s headquarters will remain in San Francisco.”

The transaction is set to be completed in late Q3 or early Q4.

CAI's share price has jumped 45% premarket to $55.37 after closing Thursday's session at $38.16. It is up 124.8% in the past 12 months.

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