Shareholders of Zale Corporation voted to merge with Signet Jewelers Ltd. when redeeming shares at a price of $ 21 per share. According to insiders, attendance of the general meeting of shareholders on May 29 in Dallas was quite low, reports Rapaport. After the appearance of this message, Signet shares rose on the New York Stock Exchange by almost 4% to $ 108.38 per share, while Zale remained at $ 21.13.
The main shareholder of Zale, who opposed the deal - TIG Advisors - told Dallas Morning News about its disappointment with the merger, which is more profitable for investors than Zale.
Analyst Sterne Agee Ike Boruchow (Ike Boruchow) said in the comments to customers that "the merger of Zale and Signet - is a success." "We believe that the deal is beneficial to both parties, since after the merger it provides a 16-17% stake in the market of specialized jewelry retailers, as well as a significant synergistic effect.
Under the terms of the deal, Signet will pay Zale shareholders $ 21 for each share, so the total transaction amount is $ 1.4 billion, including about $ 500 million to cover the company's debts.