American Railcar Industries (ARII) announces merger agreement w/ RAIL
Oct. 22, 2018 7:05 AM ET
American Railcar Industries (NASDAQ: ARII) to merge with a wholly-owned subsidiary of ITE Rail Fund L.P., managed by ITE Management L.P., at a price of $70.00 per share, transaction valued at ~$1.75B.
John O'Bryan, President and CEO of ARI, commented, “ARI is a highly respected company in the railcar industry with a rich history of growth and innovation for over 20 years. The sale demonstrates the value this company, its employees and shareholders have created, and I would like to thank Icahn Enterprises L.P. for its support and guidance over the years. I would like to thank the ARI team for their dedication to our values, vision, and commitment to serving our customers. We look forward to working with the ITE team to continue to improve our business and grow in the years to come.”
The transaction is expected to close in Q4.
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I think this was bound to happen but did not have my shares in ARII and/or RAIL (sold out last year).
Look at the proposed value of each (especially ARII) after the merger. The take away is we did identify the underlining value (book value and tangible assets). However, the market never priced that to 100% but w/ the merger announcement it did.
Hope you still help your shares.
EKS |
