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.

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.