Nightstar Therapeutics PLC (NASDAQ: NITE) is flying in the market this morning, and for good reason. The company is the subject of a takeover by a biotech giant.
Of course, the news excited investors, pushing the stock on a run for the top. Today, we’ll talk about:
- The takeover news;
- what we’re seeing from NITE stok as a result; and
- what we’ll be watching for ahead.
NITE Makes A Run For The Top On Takeover News
As mentioned above, Nightstar Therapeutics is having a great day in the market today after the company became the center of takeover news. Various reports are popping up in the investing space about an offer that was made to acquire the company.
According to various reports, biotechnology giant, Biogen (NASDAQ: BIIB) has made an offer to purchase the company for $877 million. Under the terms of the offer, BIIB is willing to pay $25.50 per share in cash to acquire NITE. That price represents a premium of about 68%.
Of course, the offer has been accepted by NITE. As a result, the two companies are expecting that the transaction will come to a close in the middle of this year. Of course, it’s important to keep in mind that the transaction is subject to customary closing conditions as well as regulatory approval.
What We’re Seeing From The Stock
One of the first things that we learn when we start to dive into the market is that the news leads to moves. When it comes to Nightstar Therapeutics, the news proved to be overwhelmingly positive.
After all, this isn’t your standard takeover. A 68% premium is a massive win for the company and a huge immediate return of value to shareholders.
So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:01), NITE stock is trading at $25.18 per share after a gain of $10.01 per share or 66.06% 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 NITE. In particular, we’re interested in following the story surrounding the acquisition of the company as it is still subject to conditions. Noentheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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