OPENLANE Announces Major Repurchase of Convertible Preferred Stock
OPENLANE's Bold Move in the Market
OPENLANE, Inc. (NYSE: KAR), a prominent player in the digital marketplace for wholesale used vehicles, has taken a significant step forward by agreeing to repurchase 53% of its Series A Convertible Preferred Stock. This decision reflects the strength and strategic direction of the company.
Details of the Stock Repurchase
The repurchase agreement involves a cash consideration estimated at around $559 million. By executing this buyback, OPENLANE aims to reduce the preferred shares held by Apax Partners, L.P. by approximately 50%, while the holdings of Periphas Capital, L.P. will be reduced by about 80%. The buyout price is set at $29.70 per share on an as-converted basis, providing a competitive market-based arrangement for these valuable assets.
Leadership Insights on Company Growth
Peter Kelly, the CEO of OPENLANE, expressed his satisfaction with the progress made since 2020. He stated, "The strategic investments made in our company have proven highly beneficial for both OPENLANE and our customers, generating strong returns for the investors involved. Since then, our company has undergone a successful rebranding, simplified operations, and improved technological leadership which has allowed us to accelerate growth. The current transactions paired with our robust cash generation from our digital operating model enhance OPENLANE as an enticing choice for both new and existing investors."
Continued Support from Partners
Roy Mackenzie, a partner at Apax, commented on OPENLANE's remarkable transformation over the years. He noted the positive momentum and strong results being delivered, which reinforces their belief in the company's vast growth opportunities. Mackenzie emphasized their commitment to supporting OPENLANE's management and future endeavors.
Future Outlook and Transactions
The anticipated closing of the repurchase transactions is expected shortly after the end of September, with a target completion before mid-October. Additional details regarding the updated agreements involving OPENLANE and the preferred stockholders will be disclosed in a Form 8-K filing by the company, further clarifying this significant development.
About OPENLANE
OPENLANE, Inc. specializes in creating seamless wholesale transactions by connecting a wide array of buyers and sellers in the automotive marketplace. Their innovative offerings provide a transparent and efficient experience, which aids customers in making well-informed decisions. With operations that span multiple countries, OPENLANE has established itself as a leader in the industry.
Frequently Asked Questions
What percentage of preferred stock is OPENLANE repurchasing?
OPENLANE is repurchasing 53% of its Series A Convertible Preferred Stock.
How much is the total cash consideration for the repurchase?
The total cash consideration for the repurchase is approximately $559 million.
What is the repurchase price per share?
The repurchase price per share of common stock is $29.70 on an as-converted basis.
When is the anticipated closing date for the transactions?
The transactions are expected to close shortly after September 30 and before October 20.
What is OPENLANE's main business focus?
OPENLANE focuses on connecting automotive manufacturers, dealers, and other entities in a digital marketplace for buying and selling used vehicles.
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