Shares of Hudson Ltd (HUD) are up 45.9% in 9:50 a.m. EDT trading today, after the operator of in-airport convenience stores received a buyout offer from its controlling shareholder, Swiss-based Dufry AG Group.
Dufry already owned 57.4% of Hudson stock. Today, Dufry agreed to buy all of the shares it does not yet own for $7.70 each, cash, which it says is a 50% premium over the stock's Tuesday closing price.
"Hudson will become an indirect wholly owned subsidiary of Dufry and will be delisted from the New York Stock Exchange," Hudson notes in a press release. Prior to going public in 2018, it had been owned by Dufry for nearly nine years.
Hudson's board of directors has already approved the buyout. Now all that remains is for its shareholders to vote in favor of it -- and for Dufry to raise the cash it will need to accomplish it.
If all goes well, Hudson expects the buyout to close sometime in Q4 2020. Shareholders have the choice of selling today for a 46% profit or waiting a few months to get the full 50% premium.