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Bill Ackman's Final JCP Liquidation Price: $12.60/Share

Tyler Durden's picture





 

There might have been some confusion about the clearing price at which the Citigroup-underwritten offering of all of Bill Ackman's JCP 39,075,771 shares would be sold by Pershing Square to Citi. That confusion is now gone: the price is $12.60/share.

From the just filed secondary selling prospectus:

Citigroup Global Markets Inc. is acting as underwriter of the offering. We and the Selling Stockholders have entered into an underwriting agreement with the underwriter. Subject to the terms and conditions of the underwriting agreement, the Selling Stockholders have agreed to sell to the underwriter, and the underwriter has agreed to purchase 39,075,771 shares of common stock at a price of $12.60 per share, which will result in $492,354,715 of aggregate proceeds to the Selling Stockholders before expenses.

 

The underwriter is committed to purchase all the common shares offered by the Selling Stockholders if it purchases any shares.

And with Ackman's average cost in the mid $20s, this means the liquidation price was the proverbial "half off" which is rather appropriate considering the company in question.

Fhe front cover of the Prospectus:

 


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