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Cummins exchange offer for Atmus shares oversubscribed

EditorAhmed Abdulazez Abdulkadir
Published 03/14/2024, 10:35 AM
Updated 03/14/2024, 10:35 AM
© Reuters.

COLUMBUS, Ind. - Cummins Inc . (NYSE: NYSE:CMI), a global power leader, has announced the oversubscription of its exchange offer for shares of Atmus Filtration Technologies Inc. (NYSE: ATMU). The offer, which allowed Cummins shareholders to exchange their shares for Atmus stock, ended on Tuesday, with a preliminary report indicating a high level of participation by shareholders.

According to Broadridge Corporate Issuer Solutions, LLC, the exchange agent, approximately 69.1 million Cummins shares were validly tendered and not properly withdrawn by the deadline. This includes shares tendered by odd-lot shareholders, who hold fewer than 100 shares and are not subject to proration. Cummins plans to accept 5.6 million of these tendered shares in exchange for the 67.1 million shares of Atmus stock it owns.

Due to the oversubscription, Cummins will exchange a pro rata portion of the tendered shares, estimated at about 6.7% of the tendered Cummins stock, assuming all shares tendered by guaranteed delivery are delivered as per the terms of the offer. The final proration factor is expected to be announced on March 18, 2024, after the guaranteed delivery period ends. Shares not accepted in the exchange will be returned to shareholders.

The completion of this exchange offer will result in Cummins no longer retaining any outstanding shares of Atmus common stock. Goldman Sachs & Co (NYSE:GS). LLC and J.P. Morgan Securities LLC served as the dealer managers for the exchange.

Cummins Inc., headquartered in Columbus, Indiana, operates a network across more than 190 countries and territories, with a commitment to powering a more prosperous world. The company reported net sales of approximately $34.1 billion for the year ended December 31, 2023.

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