Hawaiian Air's stock soars 174% after Alaska acquires airline for a 270% premium

Hawaiian Holdings Inc.'s stock (HA) soared 174% in premarket trade Monday, after Alaska Air Group Inc. (ALK) announced a deal to acquire the parent of Hawaiian Airlines for about $1.9 billion. Under the terms of the deal, Alaska Air will pay $18 a share in cash, while assuming about $900 million of Haiwaiian's net debt, for a total equity value of about $1 billion. The price is equal to a premium of 270% over Hawaiian's closing price Friday at $4.86. The boards of both companies have approved the acquisition, which is still pending regulatory approval and approval from Hawaiian's shareholders. Alaska said the deal is expected to close in the next 12-18 months. Alaska's stock was down 11.6% premarket and has fallen 5% in the year through Friday's close, while the S&P 500 has gained 19.7%.

-Ciara Linnane

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12-04-23 0637ET

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