Stonepeak Infrastructure Fund has entered into an agreement to acquire the shipping container lessor, Textainer Group (NYSE: TGH), in a deal valued at $2.1 billion. Textainer will receive $50 per share in cash, with the total deal, including Textainer’s debt, amounting to approximately $7.4 billion. This represents a significant 46% premium over Textainer’s closing stock price on the preceding Friday.
Shareholders on the JSE will receive their consideration in South African Rand at an exchange rate determined in accordance with the merger agreement. The transaction is anticipated to close in the first quarter and does not have a financing condition. Additionally, the merger agreement includes a 30-day “go-shop” period that expires on November 22, allowing Textainer and its financial advisor to actively explore alternative acquisition proposals.
Following the completion of the transaction, Textainer will continue to be led by its President and CEO, Olivier Ghesquiere, and will maintain its headquarters in Hamilton, Bermuda. Prior to closing, Textainer plans to uphold its existing quarterly dividend for both common and preference shares. The company’s Series A and B cumulative redeemable perpetual preference shares will be called for redemption at the amount specified in the relevant certificate of designation for such preference shares no later than 120 days after the closing. Stonepeak Infrastructure Fund
This news was initially reported by the Wall Street Journal. BofA Securities is providing financial advisory services to Textainer, while O’Melveny & Myers LLP is acting as lead legal counsel in this transaction.
Stonepeak Partners has agreed to buy Textainer Group Holdings Ltd. in a deal that gives the container leasing firm an enterprise value of about $7.4 billion.
Textainer shareholders will receive $50 per share in cash, with the total value of the common shares equaling $2.1 billion, according to a statement Sunday. That represents a roughly 46% premium over the stock’s closing price of $34.15 on Friday.