Arconic has accepted a takeover bid from US private equity group Apollo, as part of an agreement to delist the company, for approximately $5.2 billion (4.7 billion euros), the US provider of aerospace parts.
Apollo will pay $30 for each Arconic share it owns, representing a 35.6% premium at the close on February 27, a day before reports of the deal negotiations emerged. Shares of Pittsburgh-based Arconic were up 27.5% in premarket trading.
The deal, which is expected to close in the second half of the year, is valued at around $3 billion, according to Reuters calculations.
Acceleration of Airbus and Boeing production
The company, which supplies Boeing, turned down a nearly $10 billion offer from Apollo in 2018. Two years later, the company split into two publicly traded companies, Arconic Corp and Howmet Aerospace.
Arconic retained rolled products, aluminum extrusion and building systems, while engine products, fastening systems and forged wheels were transferred to Howmet. Arconic had to deal with falling metal prices last year and its shares lost around 38% of their value.
“Boeing and Airbus aircraft production is increasing, auto production is less affected by supply chain issues, and aluminum sheet inventories are likely to shrink, making Arconic a hotspot.” attractive entry point for a private equity investor,” said Josh Sullivan, an analyst at Benchmark. .
Source: BFM TV
