Sotheby’s news about the company being taken private has BID stock heading higher on Monday.
Sotheby’s (NYSE:BID) says that the new offer to take the company private comes from BidFair USA. This is a company controlled and owned by Patrick Drahi, who is an art collector. The deal values the company at $3.70 billion.
The Sotheby’s news release about the deal also includes the offer being made for it on a per share basis. BidFair USA will be paying $57.00 per share for BID stock. The company will be using cash to fund the transaction.
BidFair USA’s offer of $57.00 is a heavy premium over the closing price of $35.39 per share for BID stock on Friday. This represents a 61% premium over that price. It is also 56.3% above the company’s 30 trading-day volume weighted average share price.
The Sotheby’s news already has the approval of the company’s Board of Directors. The Board is also recommending that all shareholders of BID stock offer up their approval for the deal with BidFair USA.
Sotheby’s and BidFair USA still need to complete customary closing conditions before the deal can close. This includes getting approval from regulators, as well as shareholders. If the deal doesn’t run into any problems, it will close during the fourth quarter of 2019. This will return the company to private ownership after 31 years on a public stock exchange.
BID stock was up 58% as of noon Monday.
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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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