Health insurance giant Anthem just boosted its buyout offer for Cinga Corp.
The news that Anthem is looking to buy Cinga originally broke last Monday, with the Wall Street Journal reporting a $US175 a share offer, but the two sides failed to reach a deal.
Now, Anthem has increased its offer, to $US184 a share in cash and stock, which comes out to $US54 billion, including debt.
There’s a press release, which lays out the terms Anthem is offering in a bit more detail:
The offer, which values the company at $US53.8 billion on an enterprise basis, represents an “unaffected” premium to Cigna’s stockholders of more than 35.4%, based on the closing price of Cigna’s shares on May 28, 2015. Under the contemplated terms, the consideration would consist of approximately 31.4% Anthem shares and 68.6% cash and the combined company would reflect a pro forma equity ownership comprised of approximately 76.3% Anthem shareholders and approximately 23.7% Cigna stockholders.
Cinga shares jumped after news of the takeover offer Monday, but have been more or less flat the rest of the week. Shares are up about 67% over the past 12 months: