What happened
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.
So what
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.
Image source: Getty Images.
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.
Now what
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.
