Last updated:9:41 AM EST
First published:4:41 AM EST
Shares of industrial company, Arconic Corp. (ARNC) surged in pre-market trading on Thursday after the company confirmed that it will be acquired by Apollo Global (NYSE:APO) in an all-cash deal that values Arconic at an enterprise value of around $5.2 billion. This acquisition will also include a minority investment from Irenic Capital Management.
As a part of this agreement, Arconic shareholders will receive $30.00 per share in cash, which indicates a premium of around 36% to the company’s closing stock price on February 27, 2023. The acquisition is expected to close in the second half of this year and after the close of the acquisition, Arconic will be delisted from the New York Stock Exchange and will become a private company.
In addition, the company also announced its Q1 results with sales down 12% year-over-year to $1.9 billion beating analysts’ estimates by $80 million. Arconic reported earnings of $0.24 per share in Q1 versus $0.39 in the same period last year but missed Street expectations by $0.07.
ARC stock has surged by more than 10% year-to-date.
