The recent surge in Target Hospitality Corp. (NASDAQ: TH) equities on the US stock exchange denotes a notable escalation of 24.94%, culminating in $11.15 per share at the latest check. This remarkable uptick in TH stock valuation is ascribed to an acquisition bid the corporation received today.
Target Hospitality (TH) disclosed that the Board of Directors has received an unsolicited non-binding proposition from Arrow Holdings S.à r.l. (“Arrow”), an affiliate of TDR Capital LLP (“TDR”). The proposition entails acquiring all outstanding common stock shares of Target Hospitality not owned by Arrow, any investment fund managed by TDR, or their respective affiliates, for a cash consideration of $10.80 per share.
The Target Hospitality Board plans to institute a special committee comprised of independent directors along with their own independent advisors to scrutinize the Proposal. The Board has recently received the Proposal, and neither the Board nor the Special Committee has had the opportunity to meticulously review and assess it or render any decision regarding the Company’s response to the Proposal.
Target Hospitality Board has provided no guarantee that any agreement concerning the proposed transaction will be formalized or that this or any other transaction will be sanctioned or completed. Furthermore, Target Hospitality does not undertake any obligation to furnish updates regarding this or any other transaction, save as required by applicable law.
Target Hospitality has steadfastly concentrated on optimizing its financial stance, with a focus on substantially reinforcing its balance sheet to maximize financial maneuverability. The Company accomplished several capital-enhancing objectives in 2023, including expanding the Company’s credit facility by $50 million, thereby augmenting the total available capacity to $175 million.
Moreover, Target astutely managed its senior note maturity profile, extending it into 2025. These achievements have further fortified its financial flexibility, and coupled with a significant cash balance, have established a highly efficient capital structure. These factors have facilitated the company’s attractiveness to the acquisition proposal.