Wanda Sports Group CO. Ltd. (WSG) shares are surging over 74% in pre-market today, after the company announced a definitive stock purchase agreement with Advance, a private, family-owned business, to sell The IRONMAN Group in an all cash transaction at an enterprise value of US$730 million.
As part of the agreement, Wanda Sports Group said it would continue to operate IRONMAN and IRONMAN 70.3 triathlon series, Rock ‘n’ Roll Marathon Series and Epic Series off-road mountain bike series races of The IRONMAN Group in China under an exclusive license agreement.
The company intends to use the net proceeds from the sale to repay the principal amount of US$230 million and related interest and fees outstanding under the Credit Suisse facility and the US$50 million outstanding under a promissory note issued to Wanda Sports & Media (Hong Kong) Holding Co. Limited. As to the balance of the proceeds, Wand Sports plans to use all or a substantial portion of them to fund dividends or share buy-backs, subject to shareholder approval.
WSG has been trading between $1.36 and $6.24 in the past one year, and closed Wednesday’s trade at $1.98, up 30 cents or 17.86%. The stock is currently trading at $3.46, up $1.48 or 74.75% in the pre-market trading session.
Source: Read Full Article