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.
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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.