Price may be low, but agreement favorable for Univar (UNVR) - BofA

BofA Securities analyst Steve Byrne reflected on Apollo's deal to acquire Univar (NYSE: UNVR) for $8.1 billion.

"Our share count estimation for the equity calculation may be low given new grants/vesting since February 17th... Despite the price being a bit lower than what we expected, this $36.15 per share still represents a 20.6% premium to the closing price on November 22nd ($29.97) when merger discussions with Brenntag were first publicized. Some merger agreement details are clearly favorable for UNVR. If the number of UNVR’s outstanding shares decrease, Apollo will pay more per share, maintaining the same total acquisition paid. Employee equity awards with future vesting dates were treated favorably. There will be mgmt. compensation, given the change in control although the exact amounts were not listed."

For an analyst ratings summary and ratings history on Univar click here. For more ratings news on Univar click here.

Shares of Univar closed at $34.91 yesterday.

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