Acquisition news sends CAI soaringCAI International popped off the chain on news of its $2.9 billion acquisition by Mitsubishi HC Capital, sending share prices soaring just under 50% to make it TradingView’s top gainer for June 18.
Shares of CAI International rallied a fierce 47% on Friday after the company agreed to be acquired by Mitsubishi HC Capital. The deal will consist of $101 million in preferred stock and $986 million of common stock equity value, with a total enterprise value of $2.9 billion.The agreement sees Mitsubishi paying $56 per share for the transportation company, which represents a hefty premium on CAI’s Thursday closing price of $38.14.
CAI’s business focuses primarily on buying large equipment like shipping containers and railcards and then renting that equipment to shipping and transportation clients. The COVID pandemic meant a shift in consumer spending from services to goods, and led to a container imbalance and shipping delays – not great for companies scrambling for containers (or consumers waiting on the other end), but a win for CAI International, which rents out this suddenly hard-to-come-by equipment.
remarked President and CEO of CAI, Timothy Page.
There are no obvious obstacles to the deal, which bumped CAI’s stock to a 52-week high.