Robbins Arroyo LLP: Acquisition of Headwaters Incorporated (HW) by Boral Limited (BLD) May Not Be in Shareholders' Best Inter...
21 Novembre 2016 - 11:50PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Headwaters Incorporated
(NYSE: HW) by Boral Limited (ASX: BLD). On November 20, 2016, the
two companies announced the signing of a definitive merger
agreement pursuant to which Boral will acquire Headwaters. Under
the terms of the agreement, Headwaters shareholders will receive
$24.25 for each share of Headwaters common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/headwaters-incorporated
Is the Proposed Acquisition Best for Headwaters and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Headwaters is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $24.25 merger consideration represents
a premium of only 20.70% based on Headwaters' closing price on
November 18, 2016. This premium is significantly below the average
one day premium of nearly 34.33% for comparable transactions within
the past three years.
On November 1, 2016, Headwaters reported strong earnings results
for its fourth quarter and full year 2016. Headwaters reported
revenue of $291.6 million for the three months ended September 30,
2016, a 7% increase from the same period of the prior year.
Headwaters also reported revenue of $975 for the fiscal year ended
September 30, 2016, a 9% increase from the prior year. In
commenting on these results, Headwaters Chief Executive Officer and
Chairman of the board Kirk A. Benson remarked, "We are pleased with
our fiscal year performance, increasing Adjusted EBITDA by over
14%, and finishing well into our guidance range.… We anticipate a
range of mid-single to double digit top-line growth in our legacy
product groups, primarily through sales of increased volumes of fly
ash and building products. Combined with our continuous improvement
efficiency gains, our top-line growth should drive overall Adjusted
EBITDA margin expansion in 2017."
In light of these facts, Robbins Arroyo LLP is examining
Headwaters' board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Headwaters shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material information.
Headwaters shareholders interested in information about their
rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20161121006244/en/
Robbins Arroyo LLPDarnell R. Donahue619-525-3990 or Toll Free
800-350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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