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Stonepeak to take Textainer private in $7.4B deal

Shares of Textainer (TGH) are spiking after the company announced that private investment company Stonepeak will take the company private with a deal valued at $7.4 billion. Shareholders of Textainer will receive $50 per share in cash, with total value of common shares equaling about $2.1 billon. Yahoo Finance Anchors Seana Smith and Brad Smith break down the deal and what it means for both companies going forward.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

SEANA SMITH: I aso want to take a look at Textainer shares. They are on the move. The marine cargo company announcing that Stonepeak, a US infrastructure investor, is going to take them private. That deal is expected to close in the first quarter of 2024.

You're looking at a move of just over 40%. Now, Stonepeak partners agreeing to buy this company for just over $7 billion-- $7.4 billion. Textainer shareholders are going to receive $50 per share in cash with a total value of the common shares equaling just about $2.1 billion.

Now, Textainer forming a critical link in the global trade. That was according to a senior manager director there from Stonepeak saying that the business is underpinned by high quality assets and also a contracted cash cows that provide-- contracted cash flows, excuse me, that provide substantial downside protection and resilient through a cycle performance.

So they're seeing it as a smart play moving forward again. When you take a look at the price being paid, that explains the massive move that we're seeing in shares today, up just over 43%. So we'll see what happens with Textainer moving forward under the new ownership of Stonepeak partners.

BRAD SMITH: Yeah, a company that went public back in 2007 at about $16.50 a share. It's been a storied time span for Textainer as a publicly traded company. But they will no longer have the duty of reporting to us on a quarterly basis. So, mazel.

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