Why PZN Surged Over 40% Today? Pzena Investment Management, Inc.

Jul 27th, 2022 11:43 EST

Why PZN surged over 40% today during the premarket hours? The stock price of Pzena Investment Management, Inc. (NYSE: PZN) passed over $9.3, which is more than 40% of its closing price yesterday. Here is why it happened. On July 26th, at 16:50 EST, PZN announced that the company would be a private company. The going private process will take place through a transaction in which holders of PZN Class A common stock will receive $9.60 per share in cash. The company has entered an agreement to merge with and into a newly formed subsidiary of its operating company, Pzena Investment Management, LLC (“PIM”), in an all-cash transaction that implies an enterprise value for PZN of approximately $795 million. The agreed price of $9.6 per share is 49% higher than PZN’s closing stock price on July 26, 2022, and a premium of approximately 46% over the 90-calendar day volume weighted average price. PZN has declared that the company will maintain its regular quarterly dividend of $0.03 per share for the third quarter of 2022. The transaction completion date is predicted to be in the fourth quarter of 2022. It will happen if PZN stockholders approve the process. PZN also published its financial results for the Second Quarter of 2022. The numbers mostly show a decline in all essential factors. The revenue decreased by 7.7% for the first quarter and 4.3% for the second quarter.

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