Cubic Corp surges after offer from Singapore's ST Engineering
Cubic Corp.
$0.00
20:55 06/01/25
Shares of Cubic Corp surged in pre-market trade on Monday after the company confirmed it had recently received an unsolicited buyout proposal from Singapore Technologies Engineering (STE) at $76 a share in cash.
Cubic agreed last month to be bought by private equity firms Veritas Capital and Elliott Management for $70 a share in cash.
The company said the Veritas merger agreement remains "in full force and effect". However, Cubic has determined that the STE proposal would reasonably be expected to lead to a "superior" proposal.
"Accordingly, the board has determined to engage in discussions with ST Engineering to further evaluate the merits and risks of the proposed transaction relative to the pending transaction with Veritas and Evergreen, including the value offered to our shareholders, the expected completion timing of each transaction, and the regulatory and closing risks associated with each transaction," it said.
Under the terms of the latest proposal, STE would sell Cubic’s CMPS business immediately following the acquisition to an affiliate of Blackstone Tactical Opportunities.
At 1240 GMT, Cubic shares were up 9.4% in pre-market trade at $76.27.