Goldman Sachs DCF shows Select Medical value up to $25.33/share, challenging $16.50 merger price
SEM sits 42% above its 52-week low of $11.65.
Summary
Select Medical is supplementing its proxy disclosures in response to shareholder lawsuits challenging its pending take-private merger. The disclosures include a Goldman Sachs DCF analysis showing a potential value range of $15.04 to $25.33 per share, notably higher than the $16.50 per share offer. This follows an 8-K filed today and prior news of investigations into the board regarding the merger. The significant discrepancy between the offer price and the upper end of the valuation range, coupled with legal challenges, creates substantial uncertainty for the deal's completion at the current terms. Shareholders are pushing for a higher price or a re-evaluation of the transaction.
At the time of this announcement, SEM was trading at $16.54 on NYSE in the Life Sciences sector, with a market capitalization of approximately $2.1B. The 52-week trading range was $11.65 to $16.99. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Wiseek News.