Why Magnachip Stock Skyrocketed on Friday
Shares of Magnachip (NYSE: MX) skyrocketed in early trading Friday after the company announced that it is going private in a $1.4 billion deal. Private equity fund Wise Road Capital has agreed to acquire the South Korean chip specialist. As of 11:20 a.m. EST, the stock was up by 27.1% to $25.95.
Wise Road will be acquiring Magnachip shares for $29 per share in cash, which represents a premium of 75% over the stock's 3-month volume-weighted average share price, and a 54% premium compared to the closing price on March 2, before rumors broke that the semiconductor company was pursuing a sale.
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Source Fool.com
