Shares of crude oil tanker owner Gener8 Maritime Inc's (NYSE: GNRT) shares popped as much as 35.5% in trading Thursday after a takeover bid was announced. At 2:30 p.m. EST shares were still up 29.3% on the day.
Continue Reading Below
Belgian firm Euronav is the company buying Gener8 and the transaction announced will have shareholders getting 0.7272 shares of Euronav for each share of Gener8. Once completed, Gener8 shareholders will own 28% of Euronav's shares outstanding.
Gener8 shareholders will get a vote on the deal, but Euronav announced that about 48% of shareholders are already committed or are expected to commit to voting for the deal.
There's no guarantee that an acquisition will go through, but with shareholders already lining up to vote for the deal, and Euronav paying a massive premium, it looks likely this will close as planned. Gener8 shareholders now have the choice of selling and taking Thursday's profits or holding on and getting shares of Euronav when the acquisition closes. If you're bullish on the tanker business, holding tight isn't a bad move, but taking some chips off the table is compelling given the pop in shares.
10 stocks we like better than Gener8 MaritimeWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Gener8 Maritime wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of December 4, 2017