Textainer(NYSE: TGH) stock is seeing big gains in this week's trading. The shipping container specialist was up 43.7% from last week's market close before the market opened this Friday, according to data from S&P Global Market Intelligence.
Textainter published a press release on Oct. 22 announcing that it had agreed to a buyout deal that would take the company private. The company is on track to be purchased by private equity firm Stonepeak at a price of $50 per share.
Textainer shareholders just scored a big win
The $50-per-share buyout price for Textainer represented a roughly 46% premium compared to where the stock closed last Friday. The deal values the shipping container specialist at roughly $2.1 billion and suggests an enterprise valuation of approximately $7.4 billion. The deal is expected to close in the first quarter of next year.
Is Textainer stock a buy right now?
Textainer will publish its third-quarter earnings results before the market opens on Nov. 2, but the results probably won't be terribly important for shareholders. With the company on track to be acquired and taken private by Stonepeak, Textainer's stock movements will largely hinge on the progression of the buyout.
While the acquisition is still subject to regulatory clearance and approval from shareholders, there's a very high chance that it will be completed. There's no real antitrust risk here, and the shareholder base will almost certainly approve the deal.
On the other hand, now may not be a great time to buy Textainer stock. With shares trading at $49.09 per share as of this writing, the stock offers upside of less than 2% assuming the go-private deal is completed at the stated price of $50 per share. Shareholders will likely also be subject to a small fee when the buyout is completed.
If you're looking to score a small gain in a relatively short period of time, the stock may have some appeal at current prices. But given the risk that the time to complete the acquisition stretches beyond the stated window, Textainer shares aren't particularly appealing right now.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
