Shares of Ryder System soared after the transportation and logistics company, best known for its fleet of commercial rental trucks, emerged as the target of a takeover attempt by a private equity company.
HG Vora Capital Management, headquartered in New York City, filed a 13-D form with the Securities and Exchange Commission Friday morning that said it was proposing to acquire all the shares of Ryder at a price of $86 per share. According to the filing, that represents a 24.8% premium to the 30-day trailing average of the stock and a 20.3% premium to the closing price of Ryder on Thursday.
Ryder’s shares surged on the news. Ryder stock jumped $12.50 per share to $84, an increase of 17.50%, slightly less than the HG Vora Capital offering price.
Ryder’s market capitalization is approximately $3.65 billion.
In its filing, Vora Capital said it believes Ryder’s shares are undervalued. Prior to Friday’s surge, Ryder’s stock had declined to $71.48 per share from a November high of $87.08.
In a note, Stifel analysts wrote that HG Vora’s offer for Ryder was surprising, adding that they don’t currently expect competing offers from a strategic buyer.
On Thursday, when stocks were plunging, we said that it was time for private equity to put some of their $4 trillion in dry powder to use.
Stocks on verge of bear market – what is PE waiting for? $4 trillion in LBO dry powder
— zerohedge (@zerohedge) May 11, 2022
It appears they plan on doing just that.