Avon Shares Burst Out After PTG Capital Takeover Offer
According to an SEC filing presented on Thursday morning, the private equity investment firm offered to pay $18.75 per share for all of the company’s outstanding stock and options.
Shares traded recently at $7.13, up 7.2 percent. Shares were halted three times between 11:37 a.m. ET and 11:54 a.m.
PTG Partners said it has “substantial experience in managing acquisitions and is committed to working quickly to complete due diligence and execute a definitive agreement.” They expect to be able to complete the proposed agreement within 10 days from the start of the due diligence period.
In the filing, Steve Kohe, General Counsel and Secretary at PTG Capital Partners LTD., states he believes that a combination of Avon and PTG Partners would result in considerable benefits for shareholders of both businesses, and for Avon employees.
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Avon reported its first quarter financial results a couple of weeks ago, missing estimates. While the Street expected earnings of $0.07 per share on revenue of $1.834 billion, the company reported earnings of $0.04 per share on revenue of $1.794 billion.
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