After Record M&A Activity in 2021, THESE 4 Stocks are Set for Premium Price Takeovers in 2022 April 08, 2022 - Baystreet.ca VANCOUVER – Last year in 2021, over 63,000 M&A deals set the all-time record with whopping $5.9 trillion, with deals in the US alone up by 82%. Now analysts at both Morgan Stanley and KPMG are predicting 2022 to be another strong year. Here now are FOUR stocks that are set for being taken over with a premium price in play: LHC Group, Inc. (NASDAQ:LHCG), Nielsen Holdings plc (NYSE:NLSN), Renewable Energy Group, Inc. (NASDAQ:REGI), and Activision Blizzard (NASDAQ:ATVI). LHC Group, Inc. (NASDAQ:LHCG) Shares of healthcare provider LHC Group rose after the Wall Street Journal reported that UnitedHealth Group agreed to by the company for about $5.4 billion in cash. As per reports of the deal, UnitedHealth has agreed to pay $170 a share for LHC, marking an 8.1% premium to the previous day’s closing price of $157.23 per share. By midday after the new hit, the price had already risen to $167.34, representing a 6.42% increase in just the first few hours of trading. LHC has approximately 30,000 employees who provide more than 12 million annual in-home patient-focused interventions, according to the statement. UnitedHealth expects the LHC deal to be neutral to its outlook for adjusted profit per share in 2022, with a modest add in 2023, according to Reuters. LHC Group co-founders Keith and Ginger Myers will invest $10 million in the health insurer’s stock, following the close of the deal. Nielsen Holdings plc (NYSE:NLSN) Global leader in third-party audience membership, data and analytics firm Nielsen Holdings recently approved an all-cash $16-billion transaction, including assumption of debt that values the company at $28 per share. The Nielsen Board of Directors voted unanimously to support the acquisition proposal, which represented a 10% premium over a previous proposal and a 60% premium over Nielsen's unaffected stock price as of March 11, 2022, the last trading day before market speculation regarding a potential transaction. The announcement immediately caused a spike in the value of Nielsen shares by more than 20%, moving up from $22.21 to $26.72 before the first day of trading closed. "After a thorough assessment, the Board determined that this transaction represents an attractive outcome for our shareholders by providing a cash takeout at a substantial premium, while supporting Nielsen's commitment to our clients, employees and stakeholders,” said James A. Attwood, Chairperson of Nielsen's Board of Directors. “The Consortium sees the full potential of Nielsen's leadership position in the media industry and the unique value we deliver for our clients worldwide." Renewable Energy Group, Inc. (NASDAQ:REGI)Oil giant Chevron made its biggest bet in company history into alternative fuels, through a $3.15 billion acquisition of biodiesel maker Renewable Energy Group. While biodiesel and renewable diesel use similar feedstocks, renewable diesel undergoes a separate refining process to make it chemically identical to ultra-low-sulfur diesel.As per the deal, Chevron said it would pay $61.50 in cash for each share of Renewable Energy, representing a premium of more than 40% prior to the company’s closing price the Friday before the Monday announcement took place. Since the announcement, REGI shares shot up to the premium price and continue to hover in that range. "Most people see (biodiesel) as growing in the U.S. and Southeast Asia ... and view it as a blendstock to get optimum margin because it's less expensive than renewable diesel," said Mark Nelson, Executive VP of Downstream and Chemicals for Chevron, in an interview with Reuters. Activision Blizzard (NASDAQ:ATVI)One of the biggest takeovers so far in 2022 was Microsoft’s acquisition of Activision Blizzard, which sparked more chatter within the gaming industry of additional big deals to come. The US$68.7 billion deal netted in several popular game franchises into Microsoft’s portfolio, including World of Warcraft, Call of Duty and Candy Crush. Microsoft acquired shares at a price of $95 per share for Activision Blizzard. At the time the deal was announced, shares of Activision skyrocketed from $65.39 on the previous trading day to $82.31 for a one day gain of nearly 26%—while the official purchase price was more than a 45% premium on top.
After Record M&A Activity in 2021, THESE 4 Stocks are Set for Premium Price Takeovers in 2022 April 08, 2022 - Baystreet.ca VANCOUVER – Last year in 2021, over 63,000 M&A deals set the all-time record with whopping $5.9 trillion, with deals in the US alone up by 82%. Now analysts at both Morgan Stanley and KPMG are predicting 2022 to be another strong year. Here now are FOUR stocks that are set for being taken over with a premium price in play: LHC Group, Inc. (NASDAQ:LHCG), Nielsen Holdings plc (NYSE:NLSN), Renewable Energy Group, Inc. (NASDAQ:REGI), and Activision Blizzard (NASDAQ:ATVI). LHC Group, Inc. (NASDAQ:LHCG) Shares of healthcare provider LHC Group rose after the Wall Street Journal reported that UnitedHealth Group agreed to by the company for about $5.4 billion in cash. As per reports of the deal, UnitedHealth has agreed to pay $170 a share for LHC, marking an 8.1% premium to the previous day’s closing price of $157.23 per share. By midday after the new hit, the price had already risen to $167.34, representing a 6.42% increase in just the first few hours of trading. LHC has approximately 30,000 employees who provide more than 12 million annual in-home patient-focused interventions, according to the statement. UnitedHealth expects the LHC deal to be neutral to its outlook for adjusted profit per share in 2022, with a modest add in 2023, according to Reuters. LHC Group co-founders Keith and Ginger Myers will invest $10 million in the health insurer’s stock, following the close of the deal. Nielsen Holdings plc (NYSE:NLSN) Global leader in third-party audience membership, data and analytics firm Nielsen Holdings recently approved an all-cash $16-billion transaction, including assumption of debt that values the company at $28 per share. The Nielsen Board of Directors voted unanimously to support the acquisition proposal, which represented a 10% premium over a previous proposal and a 60% premium over Nielsen's unaffected stock price as of March 11, 2022, the last trading day before market speculation regarding a potential transaction. The announcement immediately caused a spike in the value of Nielsen shares by more than 20%, moving up from $22.21 to $26.72 before the first day of trading closed. "After a thorough assessment, the Board determined that this transaction represents an attractive outcome for our shareholders by providing a cash takeout at a substantial premium, while supporting Nielsen's commitment to our clients, employees and stakeholders,” said James A. Attwood, Chairperson of Nielsen's Board of Directors. “The Consortium sees the full potential of Nielsen's leadership position in the media industry and the unique value we deliver for our clients worldwide." Renewable Energy Group, Inc. (NASDAQ:REGI)Oil giant Chevron made its biggest bet in company history into alternative fuels, through a $3.15 billion acquisition of biodiesel maker Renewable Energy Group. While biodiesel and renewable diesel use similar feedstocks, renewable diesel undergoes a separate refining process to make it chemically identical to ultra-low-sulfur diesel.As per the deal, Chevron said it would pay $61.50 in cash for each share of Renewable Energy, representing a premium of more than 40% prior to the company’s closing price the Friday before the Monday announcement took place. Since the announcement, REGI shares shot up to the premium price and continue to hover in that range. "Most people see (biodiesel) as growing in the U.S. and Southeast Asia ... and view it as a blendstock to get optimum margin because it's less expensive than renewable diesel," said Mark Nelson, Executive VP of Downstream and Chemicals for Chevron, in an interview with Reuters. Activision Blizzard (NASDAQ:ATVI)One of the biggest takeovers so far in 2022 was Microsoft’s acquisition of Activision Blizzard, which sparked more chatter within the gaming industry of additional big deals to come. The US$68.7 billion deal netted in several popular game franchises into Microsoft’s portfolio, including World of Warcraft, Call of Duty and Candy Crush. Microsoft acquired shares at a price of $95 per share for Activision Blizzard. At the time the deal was announced, shares of Activision skyrocketed from $65.39 on the previous trading day to $82.31 for a one day gain of nearly 26%—while the official purchase price was more than a 45% premium on top.