SAN DIEGO, Aug. 15, 2018 /PRNewswire/ -- Shareholder rights
law firm Johnson Fistel, LLP has launched an investigation into
whether the board members of KMG Chemicals, Inc. (NYSE: KMG)
("KMG") breached their fiduciary duties in connection with the
proposed sale of the Company to Cabot Microelectronics Corporation
("Cabot").
On August 15, 2018, KMG announced
that it had signed a definitive merger agreement with Cabot. Under
the terms of the agreement, KMG shareholders will get $55.65 in cash for each share held and 0.2 of a
share of Cabot common stock, implying a per share value of
$79.50. However, shareholders will be
subject to the future price fluctuation of Cabot's stock price.
The investigation concerns whether the KMG board failed to
satisfy its duties to the Company shareholders, including whether
the board adequately pursued alternatives to the acquisition and
whether the board obtained the best price possible for KMG shares
of common stock. Nationally recognized Johnson Fistel is investigating whether the
proposed deal represents adequate consideration, especially given
one Wall Street analyst has an $85.00
price target on the stock.
If you are a shareholder of KMG and believe the proposed buyout
price is too low or you're interested in learning more about the
investigation or your legal rights and remedies, please contact
lead analyst Jim Baker
(jimb@johnsonfistel.com) at 619-814-4471. If emailing,
please include a phone number.
Additionally, you can [click here to join this
action].There is no cost or obligation to
you.
About Johnson Fistel,
LLP:
Johnson Fistel, LLP is a nationally
recognized shareholder rights law firm with offices in California, New
York, and Georgia. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits. For more
information about the firm and its attorneys, please visit
http://www.johnsonfistel.com. Attorney advertising. Past results do
not guarantee future outcomes.
Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com
[click here to join this action]
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SOURCE Johnson Fistel, LLP