CAI International to be Acquired by Mitsubishi HC Capital; Shares Soar 45%

Transportation finance provider CAI International’s (CAI) shares jumped about 45% in Friday’s pre-market trading as the company agreed to be acquired by Mitsubishi HC Capital at $56 per share and an enterprise value of $2.9 billion. The purchase price represents a premium of 46.8% over CAI’s closing price on June 17.

Per the terms of the deal, CAI’s Series A and Series B preferred stock investors will get $25 in cash for each preferred share held, along with all accrued and unpaid dividends. The acquisition, which awaits certain approvals, is expected to close in late Q3 or early Q4 of 2021.

CAI President and CEO Timothy Page said, “Over the past year, we have delivered on the commitment we made to our shareholders to return CAI’s focus to its core container leasing business. Executing on that strategy put CAI in position to partner with MHC, a strong, quality, global financial organization.” (See CAI International stock chart on TipRanks)

Page added, “The combination of CAI and MHC will allow MHC to leverage CAI’s global marketing and operational expertise, and along with MHC’s existing container investments will provide enhanced value to MHC’s container leasing customers, suppliers, employees, and other stakeholders.”

Additionally, upon closure of the transaction, CAI shares will cease to trade on the New York Stock Exchange.

On June 9, B.Riley Financial analyst Liam Burke reiterated a Buy rating on the stock alongside a price target of $60 (57.2% upside potential).

Burke noted that on the back of a rebound in container shipping volumes, the container suppliers are in a favorable position and will continue to secure longer-term fixtures at higher rates of return.

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