Xerox launched a tender offer to acquire HP for $24 per share

In the past few months, Xerox has been actively pursuing the acquisition of HP. Last month, Xerox said they were planning a takeover bid for HP’s outstanding shares. Today, Xerox has fulfilled its promise. One of the conditions in Xerox’s offer was a $ 24 per share purchase, of which $ 18.4 would be paid in cash and the remainder would be converted into Xerox stock.

The tender offer clearly tells HP shareholders that in addition to acquiring Xerox shares, they will also receive $27 billion in cash immediately.

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Xerox Chief Executive Officer, John Visentin said of the tender offer: “Our proposal offers progress over entrenchment. HP shareholders will receive $27 billion in immediate, upfront cash while retaining significant, long-term upside through equity ownership in a combined company with greater free cash flow to invest in growth and return to shareholders.”

Xerox also announced that in addition to Bank of America, Citi and Mizuho have confirmed that they will provide $ 24 billion in support for this acquisition proposal.

The current market value of Xerox is $7.244 billion, and that of HP is $31.767 billion. However, because Xerox’s company has a good reputation, many banks are willing to lend money to Xerox to acquire HP.

Via: ZDNet