Alliance Healthcare (AIQ) Climbs After Striking a Deal to Go Private

Alliance Healthcare Services Inc. (NASDAQ:AIQ) on April 11 climbed 26.87% in above-average trading to close at $12.75, after striking a deal with China-based Tahoe Investment Group Co., Ltd. to go private for $13.25 per share.

In particular, California-headquartered Alliance will become a subsidiary of Tahoe in a move to become a private company. The deal includes a total payment of approximately $75 million to equity holders of Alliance other than Tahoe Group.

Chairman of the Special Committee Neil Dimick said, “We are confident that we have negotiated a fair price and that this merger is in the best interest of our minority stockholders. The price of US $13.25 is a 67% premium over the last trading day prior to the offer and a 38% premium over the initial offer by Tahoe in December.”

Tahoe Investment Group was formerly known as Fujian Thai Hot Investment Co. Ltd.

A and N photography/Shutterstock.com

What Does The Smart Money Sentiment Say?

The Smart Money pool saw a slight increase from Alliance Healthcare Services Inc. (NASDAQ:AIQ). By the end of Q4 2016, we saw 5 funds holding Alliance shares valued at $10.78 million, compared to only 4 funds holding shares of the company valued at $5.4 million in Q3. If we take a look at specific hedge funds, Jim Simons increased its position on Alliance by 5%, quarter over quarter. Simons currently holds 762,960 shares of the company, which is valued at $7.3 million.

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The Bottom Line

The action from the Smart Money pool aligns well with trading performance of Alliance Healthcare Services Inc. (NASDAQ:AIQ) shares, which jumped today following a merger deal with Tahoe. For further reading, here are 10 biggest deals on Shark Tank.