Tronox Soars on Report Apollo Global Has Offered $27 Per Share

This post was originally published on this site – Tronox stock (NYSE:TROX) rose 16.3% Monday on a Reuters report that private equity firm Apollo Global (NYSE:APO) has offered $27 per share in cash to buy the maker of high-quality titanium products.

The stock touched a high of $25.42 so far in the session underway today, before trading at $23.88 at 1245 ET.

At $4.3 billion, Apollo’s offer is roughly 1.6 times Tronox’s 2020 annual revenue of $2.75 billion.

Tronox makes titanium dioxide pigment, specialty-grade titanium dioxide products and high-purity titanium chemicals, and zircon.

As per Tronox’s outlook for the ongoing quarter, titanium dioxide and zircon prices are expected to continue to increase. Titanium dioxide sales volumes are expected to decline 5% to 10% sequentially from record second-quarter levels, due to supplier and logistics constraints.

Zircon sales volumes are expected to remain elevated, benefiting from sales from inventory, though lower than second-quarter 2021 levels.

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