Keep Your Eyes on Stock News: WESCO International (NYSE:WCC)

 WESCO International (NYSE:WCC) stock identified change of 37.50% away from 52-week low price and recently located move of -3.44% off 52-week high price. It has market worth of $2.40B. WCC stock has been recorded 9.09% away from 50 day moving average and 14.51% away from 200 day moving average. Moving closer, we can see that shares have been trading 5.22% off 20-day moving average.

 On Dec. 26, 2019, WESCO International (NYSE:WCC) a leading provider of electrical, industrial, and communications MRO and OEM products, construction materials, advanced supply chain management and logistics services, confirmed it has delivered to the Anixter International (NYSE: AXE) board of directors an improved proposal to acquire Anixter, a leading global distributor of Network & Security Solutions, Electrical & Electronic Solutions and Utility Power Solutions, for $93.50 per share in cash and stock. 

The scale, earnings power and significant free cash flow of the combined business would accelerate growth and deliver increased shareholder value. This proposed transaction would bring together WESCO’s and Anixter’s diversified product offerings, broad customer relationships, extensive global footprint and service capabilities, and substantial intellectual and human capital to create a premier electrical and data communications distribution company. Together, WESCO and Anixter would be positioned to invest in digital transformation on a faster timeframe, benefit from growth and operational synergies, and accelerate the combined company’s growth and profitability. 

WESCO’s proposal of $93.50 in cash and stock consists of the following:

  • Consideration per Anixter share of $63.00 cash plus a fixed exchange ratio of 0.2397 shares of WESCO common stock plus $16.65 of a newly created class of WESCO perpetual preferred stock. Based on the closing price of WESCO’s common stock on December 26, 2019, the total consideration represents $93.50 per share.
  • Anixter stockholders would participate in all the value upside in the WESCO common stock. The common stock consideration would be subject to downside protection, such that if the average market value of WESCO common stock prior to closing is between $46.23 per share and $57.79 per share, then the cash consideration paid at closing would be increased by up to $2.77 per share to ensure that the total consideration remains at $93.50 per Anixter share.
  • The perpetual preferred stock is expected to have a fixed market rate of approximately 9.25% (representing a spread of 325 bps over the prevailing unsecured notes to be issued to enact the transaction), subject to reset and a five-year non-call feature, and will be listed on the New York Stock Exchange.
  • Together, the upfront consideration and Anixter stockholders’ share of the capitalized synergies represents a significant value opportunity of over $100 per share for Anixter stockholders.
  • Based on the number of shares of WESCO and Anixter common stock currently outstanding, it is anticipated that WESCO stockholders would own 84% and Anixter stockholders 16% of the combined company.

 The Services sector company, WESCO International noticed change of -1.33% to $57.79 along volume of 691517 shares in recent session compared to an average volume of 458.47K shares. The stock observed return of 4.09% in 5 days trading activity. The stock was at 7.78% over one month performance. WCC’s shares are at 23.61% for the quarter and driving a 24.52% return over the course of the past year and is now at 20.40% since this point in 2018. 

 The average volatility for the week at 1.74% and for month was at 1.88%. There are 41.46M shares outstanding and 33.42M shares are floated in market. Right now the stock beta is 1.74. 

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