Naked Brand Group Inc (NASDAQ: NAKD) is having an overwhelmingly strong start to the trading session this morning after news broke late yesterday surrounding an approved merger. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from NAKD; and
- what we’ll be watching for with regard to the stock ahead.
NAKD Announces Merger Approval
As mentioned above, Naked Brand Group is having an incredibly strong day in the market today after announcing that shareholders have approved a merger agreement. In a press release issued earlyt his morning, the company announced that stockholders have approved a proposal to adopt a previously announced Agreement and Plan of Merger. The agreement is dated May 25, 2017 and was amended on July 26, 2018, February 21, 2018, March 19, 2018 and April 23, 2018. The agreement was created by NAKD, Bendon Limited, Bendon Group Holdings, Naked Merger Sub, Inc., and a wholly owned subsidiary of Holdco and Benton Investments Ltd (owner of a majority of outstanding shares of Bendon).
In the release, NAKD said that at a Special Meeting of Investors, shares representing approximately 54% of issued and outstanding shares were voted with more than 98% being voted in favor of the proposal. Under the terms of the merger agreement, shareholders of Bendon will exhchange the outstanding ordinary shares of Bendon for ordinary shares fo Holdco. Immediately there after, NAKD will merge with Merger Sub, with Naked surviving as a wholly owned subsidiary of Holdco and stockholders of the company receiving Holdco ordinary shares. In a statement, Carole Hochman, Chairwoman, CEO and Chief Creative Officer at NAKD, had the following to offer:
We are very pleased with the affirmative vote at the special meeting of stockholders concerning our business combination with Bendon and we now look forward to closing this transaction.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In the case of Naked Brands, the news proved to be overwhelmingly positive. With the vote cast, it’s official, NAKD will complete the merger. So, it’s no surprise to see that excited investors are sending the stock on a run for the top. At the moment (9:49), NAKD is trading at $2.09 per share after a gain of $0.61 per share or 41.22% 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 close eye on NAKD. In particular, we’re interested in following the transaction to ensure that the merger does indeed close. As we can expect, it is still subject to customary closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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