Shares of Playtika (NASDAQ: PLTK) were trading higher Tuesday after the mobile gaming company announced the preliminary results of a recent tender offer to buy back some of its stock. The company said it expects to repurchase 51,813,472 shares at $11.58 per share.
Not surprisingly, the stock rose to nearly that level, and was trading at $11.37 a share, up 14.3%, as of 9:58 a.m. ET.
Playtika had announced the tender offer at the end of August, saying at the time that, after a strategic review, management had concluded that it was in the best interests of Playtika and its controlling shareholder group, the Giant/Alpha Group, due to Giant/Alpha's debt obligations. Without a tender offer, it said, Giant/Alpha might have been forced to liquidate a substantial percentage of its position, pushing the stock price lower.
Source Fool.com