Hanwha Q Cells Co Ltd (NASDAQ: HQCL) is having an incredibly strong start to the trading session this mornign after announcing news that it has received a takeover offer. Of course, the takeover offer comes with a strong premium, which led to excitement among investors and sent the stock screaming for the top. Today, we’ll talk about:
- The offer;
- what we’re seeing from the stock; and
- what we’ll be watching for with regard to HQCL ahead.
HQCL Receives A Takeover Offer
As mentioned above, Hanwha Q Cells is having an incredibly strong start to the trading session this morning after news broke that the company has received a takeover offer. In a press release issued late yesterday, the company announced that it received the offer befoe issuing a press release this morning surrounding the formation of a special committee to consider the offer.
In the release, HQCL said that the offer came from Hanwha Chemical Corporation in the Republic of Korea. The offer involved the acquisition of all outstanding shares of HQCL not already owned by the purchaser in a going private transaction. The offer also came at a strong premium, providing a price of $9.00 per American Depository Share or $0.18 per ordinary share.
In the release, HQCL said that it expects that the Special Committee will engage and retain independent legal and financial advisors to assist in its review of the proposed takeover. Nonetheless, it is important to remember that no decision has been made by the company to either accept or reject the offer.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dive into the market is that the news causes moves. In the case of Hanwha Q Cells, the news released proved to be overwhelmingly positive. After all, what investor doesn’t want to see an acquisition at a strong premium? So, it comes as no surprise that excited investors are sending the stock on a run for the top this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:24), HQCL is trading at $8.41 per share after a gain of $1.81 per share or 27.42% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a clsoe eye on HQCL. In particular, we’re interested in following the story surrounding the company’s review of the takeover offer and whether or not they will accept it. Nonetheless, we’ll continue to follow the news closely and bring it to you as it breaks!
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