Acquisition of the New Home Company (NWHM) by Apollo Global Management; Stocks skyrocket to 83% early in the day

0

What’s going on with NWHM?

Shares of the New Home Company (NWHM) surged today after the company announcement it was acquired by subsidiaries of Apollo Global Management, Inc. (APO) in a cash transaction valued at $ 173 million in equity.

Under the terms of the agreement, The Apollo Funds will launch a takeover bid to acquire all of the outstanding shares of NWHM for $ 9.00 per share, an 85% premium over the July 22, 2021 closing price. of $ 4.86 per share. At 11:49 a.m. on Friday, shares of NWHM had risen 83% to $ 8.90.

Founded in 2009, The New Home Company is a next generation home builder focused on designing, building and selling homes in key markets of California, Arizona and Colorado.

What does this mean for The New Home Company?

Upon completion of the transaction, NWHM will become a private company and the common shares of NWHM will no longer be listed on a public market. However, Apollo’s ability to provide flexible capital and knowledge of the residential construction industry will only allow NWHM to further accelerate the growth of its business.

“Over the past several years, we have transformed the company into a growing and diverse builder with operations in three states,” said H. Lawrence Webb, executive chairman of the board of directors of The New Home Company. “We have strengthened our balance sheet, streamlined our cost structure and repositioned our product offerings to cater to a larger pool of buyers. Apollo’s ability to provide flexible capital and in-depth knowledge of the residential construction industry will help us accelerate the growth of our business. “

The transaction will be financed by equity provided by the Apollo funds and, if necessary, by committed debt financing. It is scheduled to close in the second half of the year.

NWHM has a Short Term Technical Rank of 47. Find out what that means for you and get the rest of the rankings on NWHM!

The New Home Co Inc is a home builder that focuses on the design, construction and sale of homes. The company operates in two segments, residential construction and paid construction. It builds and sells homes in metro California and Arizona, including the Southern California Coast, the San Francisco Bay Area, the Sacramento Metro, and the greater Phoenix area. The company also offers general contractor services for the construction of houses for independent third party owners.


Source link

Leave A Reply

Your email address will not be published.