GAIN Capital publishes final results of “modified Dutch auction” tender offer

Maria Nikolova

GAIN Capital has accepted for purchase 6,377,551 shares of its common stock at a price of $7.84 per share.

Online trading major GAIN Capital Holdings, Inc (NYSE:GCAP) on Friday announced the final results of its “modified Dutch auction” tender offer, which expired at 5:00 P.M., New York City time, on November 6, 2018.

As per the final results, GAIN has accepted for purchase 6,377,551 shares of its common stock at a price of $7.84 per share (reflecting a proration factor of approximately 0.95664), for an aggregate cost of approximately $50 million, excluding fees and expenses relating to the tender offer. These shares account for approximately 14% of the shares outstanding.

The final results are in line with the preliminary numbers, which were posted earlier this week. When announcing the preliminary results, GAIN also said that its Board of Directors had increased the total amount of cash available for purchases of GAIN’s common stock under its previously announced share repurchase plan to $50 million in order to bolster its flexibility to opportunistically purchase shares of common stock in the open market.

Explaining the rationale behind the purchase, GAIN said it believes that the modified Dutch auction tender offer represents an efficient mechanism to provide its stockholders with the opportunity to tender all or a portion of their shares and thereby receive a return of some or all of their investment in GAIN if they chose to do so. According to the broker, the offer provides stockholders with an opportunity to obtain liquidity with respect to all or a portion of their shares without the potential disruption to the share price.

Jefferies LLC acted as dealer manager for the tender offer.

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