TOKYO (dpa-AFX) - Penske Automotive Group, Inc. (PAG), a transportation service provider and truck retailer, said on Thursday that it has inked a merger deal to be taken private by Motown Acquisition Corporation, an entity owned by Penske Corporation and Mitsui & Co., Ltd. (8031.T, MITSF, MITSY).
Under the terms, the holders of PAG shares, other than Penske Corporation, Mitsui, and the other members of the investor group, will receive $212 per share in cash, representing an enterprise value of around $16.3 billion.
The purchase price represents a premium of around 8.6% to the closing price of PAG shares on July 21 and a premium of approximately 20.09% and 26.17% to the 60-day and 90-day volume-weighted average prices, respectively, for the period ended July 21. It is also an 8.84% premium to the closing price of the PAG stock on October 14, the trading date immediately preceding the date on which the merger deal was announced.
The transaction is expected to close in the first quarter of 2027. Post transaction, Penske Automotive will become a privately held company. Penske Corporation will own around 64% of the company, and Mitsui will own the remaining 36%.
Penske Automotive Group will release its third-quarter earnings report on October 28.
PAG was up by 8.46% at $211.29 in the pre-market trade on the New York Stock Exchange.
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