Berkshire Hathaway To Buy Remaining 19.9% Of Wesco Shares For $547 Million
Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B), the holding company of billionaire Warren Buffett, said Monday that it will acquire the remaining 19.9% of Wesco Financial (AMEX:WSC) shares it does not own in a deal worth about $547.6 million.
Berkshire Hathaway first established an 80.1% stake in Wesco more than 30 years ago for a little more than $30 million, according to The Wall Street Journal.
At the current Wesco share price, that stake is worth roughly $2.19 billion today.
Wesco, based in Pasadena, California, is a holding company with subsidiaries in the insurance, furniture, commercial real estate, and steel businesses. The company’s CEO, Charlie Munger, also serves as the vice chairman of the board at Berkshire Hathaway.
Wesco shareholders can choose to receive their payment in either cash or Berkshire Hathaway’s Class B shares, with a value estimated at $386.55 a share plus earnings consideration. The value is based on Wesco’s shareholders’ equity at the end of January.
The final deal consideration and exchange ratio for the shares has not been determined.
The deal, subject to approval of Wescoshareholders, is expected to close before the end of the second quarter.
As of 9:49 am EST, Wesco’s shares are up 1.07% to trade at $384.75.