RTTNews | Apr 8, 2021 01:50PM EDT

13:50 Thursday, April 8, 2021 (RTTNews.com) - Box. Inc, (BOX) saw their shares cripple 9.84% or $2.34 per share on Thursday after Box management decided against selling the company and instead reported a strategic investment deal worth $500 million by KKR & Co. Inc (KKR).

BOX is currently trading at $21.95, down $2.32 or 9.54%, on the NYSE. The stock varied from $14.79 to $26.47 on an average volume of 12.43 million shares for the 52-week period.

According to the report, the investment will be made in the form of preferred stock. The company reported that they plan to utilize the fund to channel a buyback program of all shares through a "Dutch Auction". The company has not reported the price of their tender offer but notes that the offer will be declared based on the market condition at the time of its filing with SEC.

As a part of the deal, KKR CEO, John Park will be added to the Box board of directors. The conversion price of the preferred stock is expected to be $27 given the company's 10-day volume-weighted average price is $20.77 for the 10-day period concluding on April, 21.

The lowest value of the stock is reported to be $24 which will also pay a 3% dividend.

Read the original article on RTTNews ( https://www.rttnews.com/3183575/stock-alert-box-down-10-on-kkr-investment-news.aspx)

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