Why StoneMor Stock Skyrocketed Today
Shares of StoneMor (NYSE: STON) soared 50% on Wednesday after the owner and operator of cemeteries and funeral homes struck a deal to be acquired by Axar Capital Management.
Axar is StoneMor's largest investor. The private equity firm owns roughly 75% of StoneMor's stock. Under the terms of the agreement, Axar would purchase all the company's outstanding shares it does not already possess for $3.50 per share. That's approximately 54% above StoneMor's closing stock price on Tuesday.
The deal includes a 60-day period during which StoneMor can solicit other bids, though the company noted that a superior offer may not be found. StoneMor also agreed to pay Axar a termination fee under certain conditions of up to 4% of the total value of its non-Axar-owned shares if it chooses a different merger partner.
Source Fool.com
