Why Veritiv Shares Are Jumping Today
Portfolio Pulse from Shivani Kumaresan
Veritiv Corporation (VRTV) has agreed to be acquired by an affiliate of Clayton, Dubilier & Rice, LLC (CD&R). Each share of Veritiv will receive $170 in cash, a premium of over 20% to the last closing price. The transaction is expected to be completed in Q4 FY23, after which Veritiv will become a privately held company. Veritiv’s dividend of $0.63 per share is payable on September 13, 2023.
August 07, 2023 | 4:07 pm
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POSITIVE IMPACT
Veritiv's acquisition by CD&R is expected to result in a significant premium for shareholders. The company's shares are already up 20% following the announcement. However, the company will become privately held post-acquisition, and its shares will no longer be listed on public markets.
The acquisition news has already resulted in a significant increase in Veritiv's share price. The premium offered to shareholders is likely to further boost the stock in the short term. However, the company's decision to go private post-acquisition means that its shares will no longer be available for trading on public markets.
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IMPORTANCE 100
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