Allego (NYSE:ALLG) stock is rocketing higher on Monday after the company confirmed a deal with Meridiam for all outstanding shares of its stock.
Meridiam will acquire all outstanding shares of ALLG stock for $1.70 each with cash. This represents a 131% premium to the closing price of 74 cents per share for Allego stock on Friday.
Following this tender offer, Allego has agreed to delist its shares from the New York Stock Exchange. Additionally, any investors that don’t tender their shares in this offer will remain investors in the delisted company.
Meridiam Director Emmanuel Rotat said the following about this news:
“Since our initial investment in Allego in 2018, we have supported the Company along the way. We are pleased today to announce this important milestone for Allego: we strongly believe that operating in a private context, with a continued support from Meridiam as majority shareholder of the Company, will ideally position Allego for its next phase of growth.”
What This Means for ALLG Stock
Allego notes that the tender off from Meridiam will be as soon as possible. It also points out that it doesn’t need minimum shareholder or regulatory approval. This has the two companies expecting the deal to close in the third quarter of the year.
ALLG stock is up 127.9% as of Monday morning. That comes with some 7.6 million shares traded. The company’s daily average trading volume is about 447,000 shares.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
