Tenneco (TEN), mcap=$1.6bn, price $19.24 vs $17.52

– Getting acquired by $APO at $20/share in cash.
– 14% spread with closing expected in Q3’22.
– Regulatory approvals are unlikely to be an issue – the key ones have already been received and others are on track.
– Buyers are unlikely to walk away cause of deteriorating economic conditions or rising interest rates.

Valuation: Tenneco getting acquired at 5.6x 2021 EBITDA, which is below historical transaction multiples of 7.3x.

Exp. gain: +14% by Sep’22

Full TEN write-up (free guest account required): https://www.valueinvestorsclub.com/idea/TENNECO_INC/9117590037

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