SAN DIEGO, Aug. 15, 2018 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of KMG Chemicals, Inc. (NYSE: KMG) ("KMG") breached their fiduciary duties in connection with the proposed sale of the Company to Cabot Microelectronics Corporation ("Cabot").
On August 15, 2018, KMG announced that it had signed a definitive merger agreement with Cabot. Under the terms of the agreement, KMG shareholders will get $55.65 in cash for each share held and 0.2 of a share of Cabot common stock, implying a per share value of $79.50. However, shareholders will be subject to the future price fluctuation of Cabot's stock price.
The investigation concerns whether the KMG board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for KMG shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given one Wall Street analyst has an $85.00 price target on the stock.
If you are a shareholder of KMG and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson Fistel, LLP
Jim Baker, 619-814-4471
SOURCE Johnson Fistel, LLP