Weber, Inc. (NYSE: WEBR) is a leading barbecue brand that is focused on developing innovative outdoor cooking products. Shares of the grilling company are surging 33% through early trading on Tuesday, October 25, 2022. Over the past three months, Weber has seen average daily volume of 2.24 million shares. However, volume of 9.06 million shares or dollar volume of around $61.97 million, has already exchanged hands through early trading.
Shares of Weber are gaining after the company announced that it has received a non-binding acquisition proposal from the company’s largest shareholder, BDT Capital Partners, LLC and its affiliates. The proposal offers acquiring all outstanding shares of Weber that the company does not own at a price per share of $6.25 cash. The offer represents a 24.8% premium compared to Weber’s closing price on October 24th.
Weber’s Board of Directors has formed a special committee of independent directors to evaluate and consider the acquisition bid, as well as any other strategic alternatives that may be available to the company. There are currently no assurances that the acquisition deal will be accepted.
The offer from BDT Capital Partners comes as Weber was reportedly weighing debt financing from the capital markets firm. Weber also reported a wider-than-anticipated third quarter loss in mid-August 2022, which has led to planned cost cutting and liquidity preservation. BDT Capital Partners currently owns 48.16% of Weber.
“Our Proposal offers immediate liquidity to the Company’s public stockholders, while eliminating the risks to the public stockholders in the current market and operating environment that the Company’s current leverage position is unsustainable and that the Company may be unable to effect a recapitalization,” says the BDT Capital Partners offer letter.
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