DryShips’ stock soars after buyout deal at 37% premium

Shares of DryShips Inc.

DRYS, +2.13%

soared 35% in premarket trading Monday, after the cargo ship operator announced a deal in which SPII Holdings Inc. will buy the shares it doesn’t already own for $5.25 a share in cash. The purchase price is 37% above Friday’s closing price of $3.83 and implies a market capitalization of $456.2 million. SPII Holdings is controlled by DryShips’ Chairman and Chief Executive George Economou. The deal comes about two months after DryShips said it received a non-binding offer letter from SPII. The stock has tumbled 32.2% year to date, while the Dow Jones Transportation Average

DJT, +2.08%

has gained 8.7% and the Dow Jones Industrial Average

DJIA, +1.20%

has advanced 11.0%.

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