Cubic (NYSE: CUB) has received an unsolicited offer from Singapore-based ST Engineering to buy the San Diego-based company’s outstanding stock for $76 in cash per share.
Cubic said Monday the latest proposal would be “superior” to a buyout offer from Veritas Capital and Evergreen Coast Capital, an affiliate of Elliott Investment Management, that it agreed to in early February.
Veritas and Evergreen agreed to acquire Cubic for $70 per share in an all-cash transaction that includes the assumption of debt and is expected to close in the second quarter of 2021.
Cubic said its board would engage in talks with ST Engineering to further evaluate its offer, but continues to recommend that the shareholders approve the merger agreement with Veritas and Evergreen.
After the proposed acquisition, ST Engineering plans to sell Cubic’s mission and performance solutions business to an affiliate of Blackstone Tactical Opportunities.
J.P. Morgan Securities acts as lead financial adviser to Cubic and Sidley Austin and Faegre Drinker Biddle & Reath serve as the company’s legal counsel.