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

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

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. (NAS:HQY) ." 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 (S&P:SPX) has gained 15%.

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