18% Annual Return With Planar

Summary

• The $0.45 spread equals a substantial return
• The deal will probably close by Year End
• Here is why this is an attractive risk:reward

Deal Target Description

Planar Systems (NASDAQ:PLNR) sells tiled liquid crystal display/LCD displays.

Deal Terms

On August 12, 2015, Leyard Optoelectronic and PLNR signed a definitive merger agreement in which Leyard will buy Planar for $6.58 per share.

Deal Financing

The deal is not conditioned upon financing. The deal target is working with Bank of America (NYSE:BAC)

Deal Conditions

The deal is subject to certain closing conditions, including approval by the shareholders of both PLNR and Leyard, and antitrust and other government clearance. The deal does not require EU approval.

Deal Price

The deal is reasonable for PLNR holders in the context of historically comparable transactions.

 

 

Conclusion

PLNR is an attractive candidate for inclusion in a long-term, diversified portfolio.