AmTrust Financial Services Inc (NASDAQ: AFSI) climbed in after-hours trading and is holding its gains today. The climb happened for a good reason. The company received regulatory approval for a going-private transaction. Of course, the news excited investors as the transaction came at a strong premium. Today, we’ll talk about:
- The news;
- what we’re seeing from AFSI stock as a result; and
- what we’ll be watching for ahead.
AFSI Announces Regulatory Approval
As mentioned above, AmTrust Financial Services is having a strong day in the market today after announcing that it has received regulatory approval with regard to a going private transaction. In a press release issued early this morning, the company said that it has received all regulatory approvals required to complete the merger transaction with Evergreen Parent, L.P.
Evergreen Parent, L.P. is an entity that was formed by private funds managed by Stone Point Capital and Barry Zyskind, Chairman and CEO at AFSI. Under the terms of the now-approved agreement, Evergreen Parent will acquire the 45% of the company’s isssued and outstanding common shares that the Karfunkel-Zyskind Family and its affiliates do not presently own or control. Shareholders of AFSI will receive $14.75 in cash for each share owned and the stock will cease trading.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of AmTrust Financial Services, the news was overwhelmingly positive. After all, upon the closing of the agreement, investors will receive an immediate return of value. So, it’s not surprising to see that the stock has climbed to the closing price on the transaction. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:13), AFSI is trading at $14.75 per share after a gain of $0.76 per share or 5.43% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on AFSI. In particular, we’ll be watching to ensure that this transaction does indeed close tomorrow. Nonetheless, with regulatory approval and customary closing conditions covered, it seems like this one’s in the bag. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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