Hamilton pigment plant
Courtesy Tronox
Shares of Tronox Holdings closed sharply higher Monday following a report that said the pigment manufacturer received an all-cash offer of $4.3 billion from private-equity giant Apollo Global Management.
On a per-share basis, the offer was for $27 a share, Reuters reported, citing sources who spoke on condition of anonymity. Tronox has hired advisers to consider the bid.
Efforts to reach Tronox for comment were unsuccessful.
Tronox (ticker: TROX) shares rose 11.05% on Monday to close at $22.81. The stock traded as high as $25.48 earlier in the session, the biggest advance since April 2020, according to Bloomberg.
Eight analysts surveyed by FactSet rate Tronox stock at Overweight, with an average price target of $25.88.
Analysts at Alembic Global Advisors said if the report of Apollo’s bid is true, Tronox shares were being undervalued.
“In a nutshell we see this bid from Apollo, if true, as a lowball bid and see further upside in the name,” Alembic said. It reiterated its Overweight rating on the stock. Alembic’s price target is $31.
Apollo Global (APO) closed Monday with a gain of more than 2%.
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