Shares of Learning Tree International Inc. soared after its CEO offered to buy the professional development company.
THE SPARK: Learning Tree Chairman and CEO David Collins and his wife, who currently hold a combined stake of roughly 31 percent in the company, are offering $5.25 per share for the remaining shares, according to a filing with the Securities and Exchange Commission.
At that price, the deal represents a total value of $47.1 million and a 29 percent premium over its closing price of $4.25 on Friday.
THE BIG PICTURE: Collins said in the filing that the offer is an opportunity for shareholders to maximize the value of their holdings. The company has made a number of efforts recently on that front, including managing costs, increasing the size of the sales force and share repurchases, but there has been little impact on the company's stock price.
Collins suggests that he is in a unique position to successfully takeover the company, as he is already familiar with the business and its operations. He hopes to complete a tender offer by the end of the year.
SHARE ACTION: Shares jumped 85 cents, or 20 percent, to $5.10 in afternoon trading Monday. The stock has traded between $4 and $9 in the past 52 weeks, largely declining in value since November.