A lawsuit was filed for investors in shares of KMG Chemicals, Inc. (NYSE: KMG) in connection with the proposed takeover and NYSE: KMG stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 10/25/2018 -- The Shareholders Foundation announces that an investor in shares of KMG Chemicals, Inc. (NYSE: KMG), filed a lawsuit against the acquisition of KMG Chemicals, Inc.
Investors who purchased shares of KMG Chemicals, Inc. (NYSE: KMG) have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE: KMG stockholders by agreeing to sell KMG Chemicals, Inc. cheaply via an unfair process.
On August 15, 2018, Cabot Microelectronics Corporation (Nasdaq: CCMP) and KMG Chemicals, Inc. (NYSE: KMG) have entered into an agreement under which Cabot Microelectronics will acquire KMG in a cash and stock transaction with a total enterprise value of approximately $1.6 billion. Under the terms of the agreement, KMG shareholders will be entitled to receive, per KMG share, $55.65 in cash and 0.2000 of a share of Cabot Microelectronics common stock, which represents an implied per share value of $79.50 based on the volume weighted average closing price of Cabot Microelectronics common stock over the 20-day trading period ended on August 13, 2018.
However, plaintiff claims that the proposed consideration NYSE: KMG shareholders will receive is grossly inadequate and undervalues KMG Chemicals, Inc. Indeed, at least one analyst has set the high target price at $81.00 per share. KMG Chemicals, Inc. reported that its Total Revenue rose from $333.44 million for the 12 months period that ended on July 31, 2017 to $465.55 million for the 12 months period that ended on July 31, 2018 and that its Net Income increased over those time periods from $23.63 million to $64.84 million. In addition, the plaintiff alleges that the process is also unfair NYSE: KMG stockholders
On October 24, 2018, NYSE: KMG shares closed at $73.25 per share.
Those who are current investors in KMG Chemicals, Inc. (NYSE: KMG) shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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