TGH stock skyrocketed to record highs Monday on news of a deal to take shipping container lessor Textainer private. Infrastructure investor Stonepeak plans to purchase the company for more than $2 billion.
According to terms of the deal, Textainer shareholders will receive $50 per share in cash, worth roughly $2.1 billion, Stonepeak announced Sunday. Including Textainer's debt, Stonepeak valued the deal at $7.4 billion.
The purchase price represents a 46% premium over Textainer's closing price of 34.15 Friday.
Stonepeak expects the transaction to close in Q1 2024, subject to customary closing conditions and regulator approvals. Textainer and its financial advisors may also solicit alternative proposals until Nov. 22, 2023 as part of the 30-day "go-shop" period included in the merger.
Textainer leases, sells and trades container freight cubes to shipping customers worldwide. It reports that it owns or manages more than 4.5 million 20-foot-equivalent units. It will continue operate as a private company and TGH stock will be delisted from the New York Stock Exchange and Johannesburg Stock Exchange shortly after the completion of the transaction.
Investment firm Stonepeak specializes in global infrastructure assets with roughly $57.1 billion in assets under management. New York-based Stonepeak has offices in Hong Kong, London, Singapore, Sydney and Houston.
Stonepeak Sparks TGH Rally
TGH stock bolted nearly 45% to all-time highs Monday. Before Monday's move, Textainer shares has dwindled to a 10% gain so far in 2023.
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