Corporate News Blog – Neff Receives a “Superior Proposal” for Takeover Within a Month of Merger Agreement with H&E Equipment Services « MarketersMedia – Press Release Distribution Services – News Release Distribution Services

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LONDON, UK / ACCESSWIRE / August 16, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Neff Corp. (NYSE: NEFF), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=NEFF. The Company announced on August 14, 2017, that its Board of Directors has received an alternative and “Superior Proposal” for acquisition from a strategic bidder. In July 2017, Neff has already entered into a definitive agreement to be acquired by H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E”). For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NEFF; also brushing on HEES. Go directly to your stock of interest and access today’s free coverage at:

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Miami, Florida based Neff is a leading regional equipment rental Company catering to the Sunbelt States and it offers an extensive range of equipment rental solutions. Its fleet of equipment includes earthmoving, material handling, aerial, and other rental equipment. It has over 15, 000 customers in the infrastructure, non-residential construction, energy, and municipal and residential construction segments. The Company has 69 branches and is supported by a staff of over 1,160 people.

The “Superior Proposal”

The Board has disclosed that the strategic bidder has offered to acquire the Company’s outstanding shares at $25 in cash for each Neff’s share. After deliberations and review of the new offer with the Company’s independent financial advisor and outside legal counsel, the Board has concluded that the new offer is a “Superior Proposal” as per the terms of the Company’s merger agreement signed with H&E.

The Board has already negotiated the definitive terms and conditions of proposed merger agreement and other related agreements with the strategic bidder, however the final decision on the matter rests with the Company.

Neff has already sent a notice to H&E regarding its Board of Directors conclusion that the strategic bidder’s proposal constitutes a “Superior Proposal”. As per the terms of the earlier agreement, H&E has the right to match the strategic bidder’s proposal including the right to modify the terms of the existing merger agreement within the five working days.

The Neff/ H&E merger agreement has a termination clause where in a fee of $13.2 million would be payable to H&E, if Neff terminates the agreement and before entering into any agreement with the strategic bidder. Neff has disclosed that the strategic bidder has offered to pay the said termination fee to H&E on behalf of Neff if the Company terminates its agreement with H&E.

The H&E/ Neff Merger agreement

On July 14, 2017, H&E and Neff entered into a merger agreement wherein H&Eagreed to acquire Neff for a total enterprise value of approximately $1.2 billion, including approximately $690 million of net debt. H&E is one of the largest integrated equipment services Companies in the United States with 78 full-service facilities throughout the West Coast, Intermountain, Southwest, Gulf Coast, Mid-Atlantic, and Southeast regions. The merger is expected to bring together two highly complementary businesses of equipment services and equipment rental with a pan-US presence including the Gulf Coast, Mid-Atlantic, Southeast, and West Coast regions.

As per the agreement, H&E has offered to pay $21.07 in cash for each Neff’s share. The agreement also had a provision for downward adjustments up to $0.44 per share if H&E incurred additional financing costs if the deal is not completed on or before January 14, 2018. The merger was expected to close in Q4 2017 subject to getting regulatory and shareholder approvals and other closing conditions.

The H&E/ Neff merger has a “go-shop” period up to August 20, 2017, wherein the special committee of Neff’s Board could solicit alternative proposals for the acquisition of Neff.

The Board of Directors of both companies had already approved the deal. Private investment funds managed by Wayzata Investment Partners LLC and Neff’s majority stake holder with approximately 62.7% shareholding have already signed an agreement to vote in favor of the merger.

Way forward

At this point Neff’s Board has not changed its stance or recommendation with regards to its merger with H&E. The Company has also clarified that there is no guarantee that the “Superior Proposal” from the strategic bidder will result in final merger agreement.

H&E has five business days to either match or exceed the proposal put forth by the strategic bidder. It would be interesting to wait and see for further developments on this deal. Either ways, Neff’s shareholders can look forward to a better value for their investment in the Company.

Last Close Stock Review

On Tuesday, August 15, 2017, the stock closed the trading session at $26.15, marginally climbing 0.58% from its previous closing price of $26.00. A total volume of 314.41 thousand shares have exchanged hands, which was higher than the 3-month average volume of 215.40 thousand shares. Neff Corp.’s stock price skyrocketed 38.36% in the last three months, 57.53% in the past six months, and 191.20% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 85.46%. The stock is trading at a PE ratio of 18.91. At Tuesday’s closing price, the stock’s net capitalization stands at $603.54 million.

H&E Equipment Services’ share price finished yesterday’s trading session at $21.09, slightly advancing 0.76%. A total volume of 274.92 thousand shares have exchanged hands. The Company’s stock price surged 3.64% in the last three months and 25.01% in the previous twelve months. Shares of the Company have a PE ratio of 19.05 and have a dividend yield of 5.22%. The stock currently has a market cap of $745.95 million.

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The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

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PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

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SOURCE: Pro-Trader Daily

ReleaseID: 472757

LONDON, UK / ACCESSWIRE / August 16, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Neff Corp. (NYSE: NEFF), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=NEFF. The Company announced on August 14, 2017, that its Board of Directors has received an alternative and “Superior Proposal” for acquisition from a strategic bidder. In July 2017, Neff has already entered into a definitive agreement to be acquired by H&E Equipment Services, Inc. (NASDAQ: HEES) (“H&E”). For immediate access to our complimentary reports, including today’s coverage, register for free now at:

Register

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NEFF; also brushing on HEES. Go directly to your stock of interest and access today’s free coverage at:

Optin

Optin

Miami, Florida based Neff is a leading regional equipment rental Company catering to the Sunbelt States and it offers an extensive range of equipment rental solutions. Its fleet of equipment includes earthmoving, material handling, aerial, and other rental equipment. It has over 15, 000 customers in the infrastructure, non-residential construction, energy, and municipal and residential construction segments. The Company has 69 branches and is supported by a staff of over 1,160 people.

The “Superior Proposal”

The Board has disclosed that the strategic bidder has offered to acquire the Company’s outstanding shares at $25 in cash for each Neff’s share. After deliberations and review of the new offer with the Company’s independent financial advisor and outside legal counsel, the Board has concluded that the new offer is a “Superior Proposal” as per the terms of the Company’s merger agreement signed with H&E.

The Board has already negotiated the definitive terms and conditions of proposed merger agreement and other related agreements with the strategic bidder, however the final decision on the matter rests with the Company.

Neff has already sent a notice to H&E regarding its Board of Directors conclusion that the strategic bidder’s proposal constitutes a “Superior Proposal”. As per the terms of the earlier agreement, H&E has the right to match the strategic bidder’s proposal including the right to modify the terms of the existing merger agreement within the five working days.

The Neff/ H&E merger agreement has a termination clause where in a fee of $13.2 million would be payable to H&E, if Neff terminates the agreement and before entering into any agreement with the strategic bidder. Neff has disclosed that the strategic bidder has offered to pay the said termination fee to H&E on behalf of Neff if the Company terminates its agreement with H&E.

The H&E/ Neff Merger agreement

On July 14, 2017, H&E and Neff entered into a merger agreement wherein H&Eagreed to acquire Neff for a total enterprise value of approximately $1.2 billion, including approximately $690 million of net debt. H&E is one of the largest integrated equipment services Companies in the United States with 78 full-service facilities throughout the West Coast, Intermountain, Southwest, Gulf Coast, Mid-Atlantic, and Southeast regions. The merger is expected to bring together two highly complementary businesses of equipment services and equipment rental with a pan-US presence including the Gulf Coast, Mid-Atlantic, Southeast, and West Coast regions.

As per the agreement, H&E has offered to pay $21.07 in cash for each Neff’s share. The agreement also had a provision for downward adjustments up to $0.44 per share if H&E incurred additional financing costs if the deal is not completed on or before January 14, 2018. The merger was expected to close in Q4 2017 subject to getting regulatory and shareholder approvals and other closing conditions.

The H&E/ Neff merger has a “go-shop” period up to August 20, 2017, wherein the special committee of Neff’s Board could solicit alternative proposals for the acquisition of Neff.

The Board of Directors of both companies had already approved the deal. Private investment funds managed by Wayzata Investment Partners LLC and Neff’s majority stake holder with approximately 62.7% shareholding have already signed an agreement to vote in favor of the merger.

Way forward

At this point Neff’s Board has not changed its stance or recommendation with regards to its merger with H&E. The Company has also clarified that there is no guarantee that the “Superior Proposal” from the strategic bidder will result in final merger agreement.

H&E has five business days to either match or exceed the proposal put forth by the strategic bidder. It would be interesting to wait and see for further developments on this deal. Either ways, Neff’s shareholders can look forward to a better value for their investment in the Company.

Last Close Stock Review

On Tuesday, August 15, 2017, the stock closed the trading session at $26.15, marginally climbing 0.58% from its previous closing price of $26.00. A total volume of 314.41 thousand shares have exchanged hands, which was higher than the 3-month average volume of 215.40 thousand shares. Neff Corp.’s stock price skyrocketed 38.36% in the last three months, 57.53% in the past six months, and 191.20% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 85.46%. The stock is trading at a PE ratio of 18.91. At Tuesday’s closing price, the stock’s net capitalization stands at $603.54 million.

H&E Equipment Services’ share price finished yesterday’s trading session at $21.09, slightly advancing 0.76%. A total volume of 274.92 thousand shares have exchanged hands. The Company’s stock price surged 3.64% in the last three months and 25.01% in the previous twelve months. Shares of the Company have a PE ratio of 19.05 and have a dividend yield of 5.22%. The stock currently has a market cap of $745.95 million.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

ReleaseID: 472757

Source URL: http://marketersmedia.com/corporate-news-blog-neff-receives-a-superior-proposal-for-takeover-within-a-month-of-merger-agreement-with-he-equipment-services/229717

Source: AccessWire

Release ID: 229717

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