Stock Alert: National General Holdings Stock Up 64% On Acquisition News

(RTTNews) - Shares of National General Holdings Corp. (NGHC) are rising over 64% in pre-market today, after the company announced that the Allstate Corp. (ALL) has agreed to acquire National General for about $4 billion in cash, or $34.50 per share.

National General shareholders would receive $32.00 per share in cash from Allstate, plus closing dividends expected to be $2.50 per share, providing $34.50 in total value per share. Allstate would fund the share purchase by deploying $2.2 billion in combined cash resources and, subject to market conditions, issuing $1.5 billion of new senior debt. Allstate expects to maintain its current share repurchase program.

The transaction is expected to close in early 2021, subject to regulatory approvals and other customary closing conditions.

NGHC has been trading in the range of $11.82 - $25.39 for the past one year, and closed Tuesday's trade at $20.41, down 49 cents or 2.34%. The stock is currently trading at $33.55, up $13.14 or 64.38% in the pre-market session.