Robbins LLP: Acquisition of Joy Global Inc. (JOY) by Komatsu Ltd. May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Joy Global Inc. (NYSE: JOY) by Komatsu Ltd. On July 21, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Komatsu will acquire Joy Global. Under the terms of the agreement, Joy Global shareholders will receive $28.30 in cash for each share of Joy Global common stock.
Is the Proposed Acquisition Best for Joy Global and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Joy Global is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $28.30 merger consideration represents a premium of only 20.5% based on Joy Global’s average closing price for the past week. This premium is significantly below the average one week premium of nearly 37.3% for comparable transactions within the past five years. Further, the $28.30 merger consideration is significantly below the target price of $30.00 set by an analyst at Avondale Partners LLC on June 2, 2016. In the last three years, Joy Global traded as high as $65.36 on July 16, 2014, and most recently traded above the merger consideration – at $28.63 – on July 23, 2015.
Joy Global shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Joy Global shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.