DryShips, Inc. (NASDAQ:DRYS) is making headlines this morning. Why? Because DRYS stock is up nearly 40% after the Athens, Greece-based company said it’ll be acquired by SPII Holdings.
Here’s what we know.
DRYS Stock Goes Soaring on Acquisition News
On Monday, August 19, DryShips, a cargo ship operator, announced a buyout deal, sending the stock deep into the green zone. According to the company, SPII Holdings, a company overseen by DryShips CEO George Economou, will purchase the shares it does not already own, with the value set at $5.25 a share in cash. On Friday, DRYS stock closed at $3.83, which means the purchase price of this deal is 37% above the company’s last closing price.
The news sparked investor interest, sending DRYS stock up more than 30% in premarket trading this morning. But it’s not as if this deal came out of thin air. Just two months ago, DryShips said it was the recipient of a non-binding offer letter from SPII Holdings. Things are moving fast, with the DryShips board approving the merger. And the pace is only going to pick up: the deal is forecasted to close in the fourth quarter.
Before moving onto the next stage of the merger, it’s likely investors of DryShips will take a moment to appreciate the trading day DRYS stock is having Monday. Especially when you consider that the stock has fallen 32.2% Y-T-D. It’s important to mention, however, that the merger still has to be approved by the company’s stockholders; there will be a special meeting held in due course.
According to Yahoo Finance, as of 12:21 PM EDT, DRYS stock is trading at $5.18; this puts the stock up 32.25%.
Do you have any thoughts on DryShips announcing a buyout deal? Did you expect DRYS stock to shoot up the way that it has Monday? Let us know your thoughts in the comments below!
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