Cannae Holdings launches $200 million tender offer
Investing.com | Editor Emilio Ghigini
Published Mar 01, 2024 06:07AM ET
NEW YORK - Cannae Holdings, Inc. (NYSE: NYSE:CNNE), a company that acquires and manages operating companies, announced the launch of a tender offer to purchase up to $200 million of its common stock. The offer, initiated through a modified Dutch auction, invites shareholders to tender their shares at a price ranging from $20.75 to $23.75 per share in cash, less any applicable withholding taxes and without interest.
The tender offer is part of Cannae's strategy to enhance shareholder value and address the discount at which its shares trade compared to net asset value. It also serves as a mechanism to accelerate the company's authorized share repurchase program. The offer is not conditional upon financing or a minimum number of shares being tendered but is subject to certain terms and conditions detailed in the offer materials.
Shareholders have until the expiration date of April 1, 2024, to tender their shares, with the option to withdraw them at any time before the deadline. The final purchase price will be the lowest price per share within the range that allows Cannae to buy shares totaling up to the $200 million limit. If the tendered shares exceed this amount, Cannae may choose to increase the number of shares it accepts by up to 2% of its outstanding common stock without extending the offer period.
The company has expressed appreciation for shareholder input on the importance of share buybacks and believes the tender offer is aligned with its long-term goal of driving shareholder value. The offer is also seen as providing shareholders with the opportunity to potentially realize a return on their investment.
The tender offer materials, consisting of the Offer to Purchase and the accompanying Letter of Transmittal, both dated March 1, 2024, will be mailed to record holders and made available to brokers, dealers, commercial banks, trust companies, and other nominee shareholders for distribution to beneficial owners of the securities.
J.P. Morgan Securities LLC is acting as the dealer manager for the offer, while D.F. King & Co., Inc. is the information agent. For additional information, shareholders can contact J.P. Morgan Securities LLC or D.F. King & Co., Inc.
This tender offer announcement is based on a press release statement and does not constitute an offer or solicitation to purchase securities. The complete terms of the offer are set forth in the offer materials that holders should read carefully before making any decision.
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