Air Transport Services Group, Inc. ( ATSG ) shares are trading higher after the company disclosed that it will be acquired by Stonepeak for around $3.1 billion.

According to the definitive agreement, unanimously approved by ATSG’s Board of Directors, ATSG common shareholders will receive $22.50 in cash per share.

This purchase price reflects a premium of about 29.3% over ATSG’s closing share price on November 1, 2024, and a 45.5% premium over the volume-weighted average price (VWAP) of the previous ninety trading days.

Once the transaction is finalized, ATSG’s shares will no longer be listed on NASDAQ, and the company will operate as a private entity.

The transaction is anticipated to close in the first half of 2025, pending customary closing conditions such as ATSG shareholder approval and regulatory clearances.

According to the terms of the merger agreement, ATSG is permitted to solicit proposals from third parties for 35 days, ending on December 8, 2024, with the option to extend to 50 days, ending on December 23, 2024, in specific circumstances.

Mike Berger, Chief Executive Officer of ATSG, said, “This transaction reflects the tremendous value of our fleet of in-demand midsize freighter and passenger aircraft, and the strength of our talented teams across ATSG’s businesses.”

“With Stonepeak’s investment and extensive expertise in transportation and logistics and asset leasing, ATSG will be well positioned to further expand its global presence in the air cargo leasing market and enhance its service offerings to customers.”

The company plans to announce its third-quarter 2024 financial results before the market opens on November 8, 2024, and file its 10-Q after the market closes that day.

Price Action: ATSG shares are up 26.6% at $22.02 at the last check Monday.

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