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Why GasLog Ltd. Stock Just Popped 18%

By Rich Smith - Feb 22, 2021 at 12:05PM

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It's a buyout!

What happened

Shares of GasLog Ltd. (GLOG), an operator of ocean-going liquefied natural gas tankers, jumped 18% by 11:45 a.m. EST Monday after reporting a 6% increase in sales and a return to GAAP profitability in Q4 2020. Impressive as that performance was, however, it is not the reason GasLog stock is up so much today.

So what

Instead, GasLog is jumping because it's getting bought out. In a press release this morning, the company announced that private equity powerhouse BlackRock (BLK -3.02%) has agreed to buy "all of the outstanding common shares of GasLog that are not held by certain existing shareholders of GasLog" -- about 45% of the total stock outstanding, for $5.80 per share, cash. 

Wall painting depicts a large yellow fish eating a smaller yellow fish

Image source: Getty Images.

Now what

Investors have already bid up GasLog stock all the way to -- and even a little bit past -- that purchase price, indicating a high level of confidence that this deal will go through. But there's still a bit of hope that a competing offer might come in and a bidding war might break out.

Unless that happens, though, BlackRock intends to complete its acquisition of GasLog by the end of Q2 2021, shareholders and regulators permitting. Unless you think a competing offer will emerge, with GasLog's share price already above BlackRock's offer price, it's probably safe to go ahead and sell now.

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