Tronox Stock Surges on Report of $4.3 Billion Buyout Offer
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Hamilton pigment plant
Courtesy Tronox
Shares of
Tronox Holdings
were jumping Monday following a report that said the pigment manufacturer received an all-cash offer of $4.3 billion from private-equityĀ giantĀ ApolloĀ Global Management.
On a per-share basis, the offer was for $27 a share, Reuters reported, citing sources who spoke on condition of anonymity. Tronox has hired advisers to consider the bid.
Efforts to reach Tronox for comment were unsuccessful.
Tronox (ticker: TROX) shares rose 15.48% on Monday to $23.72. The stock traded as high as $25.48 earlier in the session, the biggest advance since April 2020, according to Bloomberg.
Eight analysts surveyed by FactSet rate Tronox stock at Overweight, with an average price target of $25.88.
Analysts at Alembic Global Advisors said if the report of Apolloās bid is true, Tronox shares were being undervalued.
āIn a nutshell we see this bid from Apollo, if true, as a lowball bid and see further upside in the name,ā Alembic said. It reiterated its Overweight rating on the stock. Alembicās price target is $31.
Apollo Global (APO) was up 1.4%.
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