(Tenneco) Shares of Tenneco Inc. rose more than 96% on Wednesday, after it confirmed a purchase deal by Apollo Funds for $7.1 billion.
The acquisition, at $20.00 per share, is about 100.4% of Tenneco’s closing price of $9.98 on February 22, 2022. The purchase is also a 71.6% premium over the unaffected 90-day VWAP of the company.
The purchase will make Tenneco a private company, but will retain the brand name.
Tenneco believes the deal would deliver a cash value to its shareholders, saying that it will provide it with an exciting platform to deliver on its global strategy.
The deal is expected to close in the second half of the year, having been unanimously approved by Tenneco Board of Directors.
TEN: NYSE is up +96.39% on premarket, APO: NYSE is up +0.079% on premarket.
