Shares of the collectibles authenticator service Collectors Universe (CLCT) jumped today after a previous acquisition offer was increased by more than 20%. As of 3:15 p.m. Wednesday, shares traded up 18% to just below the $92-per-share acquisition offer.
On Nov. 30, 2020, the company -- which grades and authenticates high-value collectibles including coins, trading cards, and memorabilia -- was presented with a cash buyout offer of $75.25 per share. It was made by an investor group led by entrepreneur and sports card collector Nat Turner, and was recommended by the board of directors at the time.
Amid strong business results that were also announced separately today, the company said the tender offer to shareholders has been amended to $92, representing an 18% premium over Tuesday's closing share price.
The new offer has been unanimously recommended by the company's board. A.J. "Bert" Moyer, chairman of the board of directors said in a statement, "This enhanced, 'best and final' offer recognizes the strong momentum in our business." Moyer went on to acknowledge the board's confidence in management, but said it also "believes that there is a significant risk that the Company's recent growth rate will decline over time," as it urged shareholders to embrace the certainty of the transaction.
The company also released preliminary second-quarter results separately today, saying strong recent results were attributable to an increase in "top-tier services" such as its Professional Sports Authenticator sports-card grading service.
With shares trading just shy of the offered cash price, shareholders are likely now getting the best outcome they will see.