Ali Group acquires Welbilt
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May 28, 2021
Ali Group threw its hat into the ring to acquire Welbilt.
The announcement comes about a month after news broke that The Middleby Corp. would acquire Welbilt in what was expected to be an all-equity transaction between the two publicly traded companies. The deal was due to be concluded by the end of 2021, and the boards of directors of both companies had already approved it, in a statement from Middleby at the time.
There is now another player in the mix for Welbilt as private group Ali Group has confirmed that it has submitted a proposal to the board of directors of Welbilt Inc. to acquire all of the outstanding shares of Welbilt common stock for $ 23 per share in cash. In addition, Ali Group will obtain binding letters of commitment for any debt financing before signing a definitive merger agreement, according to a statement from Ali Group.
The Ali group’s proposal represents a 47.2% premium over the Welbilt share price on April 20, 2021 – the last trading day before the current transaction on all Middleby-Welbilt shares. It also includes a premium of around 13.9% over the implied value of the Middleby trade as of May 24, 2021 – the last trading day before Ali Group submits its proposal to Welbilt.
Under the terms of the Middleby-Welbilt agreement, Welbilt shareholders would receive a fixed exchange ratio of 0.1240x Middleby common share for each Welbilt common share in an all-equity transaction. Based on Middleby’s volume weighted average price over the 30 consecutive trading days ending April 20, 2021, the offer price represents a 28% premium over Welbilt’s 30-day VWAP.
In its press release announcing its intention to acquire Welbilt, Ali Group said it was very confident it would get the approvals to complete the transaction.