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Aug. 27, 2019, 7:11 a.m. EDT

WageWorks board rejects unsolicited letter of interest from Mansa, urges shareholders to vote for HealthEquity bid

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By Ciara Linnane

WageWorks Inc. said Tuesday it has received an unsolicited letter of interest from Mansa Parent Corp. that values the company at $58.58 a share. The company said its board has reviewed the letter and unanimously concluded that it "contains significant contingencies and is not reasonably expected to result in a superior proposal under the terms of WageWorks' previously announced merger with HealthEquity Inc. /zigman2/quotes/210521638/composite HQY -4.13% ." The board further concluded that the offer "does not constitute a true and serious proposal." The share price on offer is based on potential synergies of at least $110 million that would be generated from an acquisition by Mansa. The HealthEquity all-cash bid made in June values WageWorks at $51.35 per share, or a total enterprise value of about $2 billion. The all-cash offer represents a 28% premium to the volume weighted average closing price of WageWorks shares for the 30 trading days prior to HealthEquity's acquisition proposal becoming public on April 29, 2019. WageWorks is holding a special meeting on Aug. 28 to allow shareholders to vote on that bid. Shares were up 0.4% premarket but have gained 89% in 2019, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.84% has gained 15%.

/zigman2/quotes/210521638/composite
US : U.S.: Nasdaq
$ 54.30
-2.34 -4.13%
Volume: 671,922
Dec. 3, 2021 4:00p
P/E Ratio
3,993
Dividend Yield
N/A
Market Cap
$4.53 billion
Rev. per Employee
$244,442
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/zigman2/quotes/210599714/realtime
US : S&P US
4,538.43
-38.67 -0.84%
Volume: 2.71B
Dec. 3, 2021 5:35p
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