Icahn Enterprises L.P. (IEP) has proposed a potential offer to acquire additional outstanding shares of common stock of CVR Energy, Inc. (CVR). The proposal suggests that the Offeror would commence a tender offer to purchase up to 15 million additional shares for a price of $17.50 per share. This represents a premium of approximately 6% to the closing price of the shares on November 7, 2024, and a premium of approximately 5% to the volume-weighted average price of the shares during the last 7 trading days.
If the proposed tender offer were to be fully or over-subscribed, IEP would beneficially own approximately 81.3% of the outstanding shares, up from the current 66.3% ownership. Additionally, in connection with the tender offer, IEP is willing to agree to certain contractual provisions for the benefit of CVR’s public stockholders following completion of the tender offer.
The proposal also highlights the expectation that a Special Committee of independent directors of CVR will consider the proposal and other contractual terms, and make a recommendation to CVR’s stockholders or determine to remain neutral with respect to the tender offer.
It is important to note that the proposal does not include any details regarding the financial performance of CVR Energy, Inc. or Icahn Enterprises L.P. at this time. Today the company's shares have moved 11.7% to a price of $18.46. If you want to know more, read the company's complete 8-K report here.
