iKang Healthcare Group Inc (ADR) (NASDAQ: KANG) is having an overwhelmingly strong start to the trading session this morning after announcing continued negotiations with regard to a potential acquisition of the company. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for with regard to KANG ahead.
KANG Heads Up In Takeover Interest
As Mentioned above, iKang Healthcare Group is having an incredibly strong day in the market today after the company announced that it has received an offer to take the company over. In a press release issued this morning, the company announced that it remains in negotiations Yunfeng Capital with regard to the potential terms of a going private transaction under which Yunfeng will acquire KANG.
In the release, KANG said that the special committee has received a proposal from Yunveng and Alibaba (BABA). This proposal proposes a transaction that would lead to Unfeng and Alibaba acquiring all of the outstanding Class A common shares, Class C common shares, and American depolistory shares of the company in an all-cash transaction. According to the proposal, the potential buyers value the transaction at $20 per ADS or $40 per share.
At the moment, the company is in discussions with significant shareholders and considering the offer. However, it’s important to keep in mind that the offer is nothing more than a proposal at this point. At the end of the day, there is no guarantee that this transaction will actually happen. So, if you’re going to move on this news, please be sure to do so with caution.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes moves. In this particular case, the news was exciting. After all, if this transaction did happen, it would represent a decent premium. So, it’s no surprise to see that the stock is making a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:09), KANG is trading at $18.75 per share after a gain of $0.83 per share or 4.62% 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 KANG. In particular, we’ll be watching for any news associated with this potential acquisition. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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