Tenneco Inc. (TEN), that designs, manufactures and markets automotive products for original equipment and aftermarket customers on Wednesday announced it has entered into a definitive agreement to be acquired by funds managed by affiliates of Apollo Global Management, Inc. (APO) a global, alternative asset manager.
In the all-cash transaction with an enterprise valuation of approximately $7.1 billion, including debt, Tenneco shareholders would receive $20.00 per share in cash. The purchase price of $20.00 per share represents a 100.4 percent premium over the company’s closing share price of $9.98 on February 22 and a 71.6 percent premium over the company’s unaffected 90-day VWAP. The transaction is not subject to a financing condition.
The transaction is expected to close in the second half of 2022. Upon completion of the transaction, Tenneco’s shares would no longer be trading on the New York Stock Exchange, and Tenneco would become a private company. Tenneco would continue to operate under the Tenneco name and brand and maintain a global presence.
Lazard is serving as financial advisor to Tenneco, and Latham & Watkins LLP is acting as legal counsel.
Rothschild & Co acted as lead financial advisor to the Apollo Funds on the transaction. BofA Securities and Citi also acted as financial advisors to the Apollo Funds. Wachtell, Lipton, Rosen & Katz is serving as legal counsel and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as financing counsel to the Apollo Funds.
Shares of Apollo Global Management, Inc are trading in pre-market at $63.10, down $0.10 or 0.16 percent from previous close.
Shares of Tenneco Inc. are currently trading in pre-market at $19.28, up $9.30 or 93.19 percent from previous close.
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