Shares of printing, imaging, and data solutions company Lexmark International (LXK) jumped as much as 13.9% on Friday, after a pending acquisition of the company, by a consortium of buyers led by Apex Technology and PAG Asia Capital, took a key step toward closing. Shares are now up 13.7% at the time of this writing.
In a filing with the Securities and Exchange Commission on Friday, Lexmark said the Committee on Foreign Investment in the United States (CFIUS) granted Lexmark and the consortium clearance to proceed with the proposed transaction. In addition, the filing said the parties "continue to expect the transaction to close in 2016."
With the transaction now more likely to close, the stock's upward move signals investors' greater confidence in the transaction. The consortium agreed to purchase Lexmark for $40.50 per share, so Friday's move puts the stock a few cents from $40 and close to the buyout price.
While CFIUS's clearance is a major step toward closing, the merger "remains subject to approval from China's State Administration of Foreign Exchange (SAFE) and other customary closing conditions," stated Lexmark's filing.