RTTNews | Sep 9, 2021 03:20AM EDT

03:20 Thursday, September 9, 2021 (RTTNews.com) - Houlihan Lokey (HLI), a global investment bank, on Thursday announced that it is increasing the tender offer price to acquire GCA Corporation by 18 yen per share.

The revised tender price of 1,398 yen per share and total cash purchase price of 65.9 billion yen would be approximately $12.71 per share and $599.1 million in the aggregate at an assumed exchange rate of 110 yen per $1.

The new purchase price of 1,398 yen per share represents a 33 percent premium to the closing stock price of 1,051 yen per share on August 2. It also represents a 42.2 percent premium to the simple average price for the three-months ended August 2.

The hiking of the offer price follows GCA's announcement earlier in the day that it was increasing its CY 2021 consolidated revenue forecast by 21.8 percent to 47.5 billion ($431.8 million). The hike approximates the increase in CY 2021 profit as per the revised forecast.

Houlihan Lokey and GCA Corporation had entered into a definitive agreement, in August under which Houlihan Lokey was to commence a tender offer to acquire GCA for a total cash purchase price of approximately 65 billion yen, or approximately $591 million, based on an assumed exchange rate of 110 yen per $1. The tender offer commenced on August 4 at a price of 1,380 yen or $12.55 per share in cash. The offer is expected to close on October 4.

Upon successful completion of the tender offer, it is expected that Houlihan Lokey will acquire all shares not tendered through a second-step at the same price. The transaction is expected to be financed with cash on Houlihan Lokey's balance sheet.

HLI closed trading on Wednesday at $89.41, up $0.11 or 0.12 percent from previous close.

Read the original article on RTTNews ( https://www.rttnews.com/3224300/houlihan-lokey-sweetens-offer-price-to-acquire-gca-corp.aspx)

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com All Rights Reserved