Long-term Staples (SPLS) shareholders might be disappointed that the Board has agreed to sell the entire firm to Sycamore Partners for $6.9 billion or $10.25 a share. The Board had approved buying $5.419 billion worth of Treasury stock on the balance sheet, for an average cost per share of $17.99.The $6.9 billion for the entire firm is only $1.5 billion, or 28%, more than the $5.4 billion paid for the Treasury shares.
10-Year Charts
SPLS data by YCharts
SPLS data by YCharts
According the Staples press release, the $10.25 per share represents a premium of roughly 20% to the 10-day average price. However, the $10.25 price is a 43% discount to the $17.99 average cost of Treasury stock on the balance sheet. It would appear that the “smart” money sold shares back to the firm, won’t it?
