Gaming Partners stock was soaring on Wednesday following news of a buyout deal for the company.
The buyout deal for Gaming Partners (NASDAQ:GPIC) comes from Angel Holdings Godo Kaisha. The company is looking to purchase GPIC for a total of $110 million. It will be using cash to fund the transaction.
The deal will have Angel paying $13.75 per share for Gaming Partners stock. This represents a roughly 79% premium over the stock’s closing price on Tuesday. Angel is intending to buy out all shares of GPIC stock, giving it complete control over the company.
Gaming Partners notes that the deal with Angel was approved by its Board of Directors, as well as a special transaction committee of independent directors. It also points out that it has approval from 51% of shareholders that agree to sell their shares for the deal.
According to Gaming Partners, the deal with Angel also includes a “Go Shop” period. This allows other companies to make offers for a limited time. This period will end on Feb. 2, 2019. GPIC says that there is no guarantee another bid will be made for the company.
Gaming Partners and Angel say that they are expecting the acquisition deal to close sometime during 2019. It will need to get approval from shareholders, regulators and complete customary closing conditions first.
GPIC stock was up 69% as of noon Wednesday, but is down 30% year-to-date.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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