Seagate (STX) shares this morning are poised to extend their recent rally, after the Wall Street Journal reported that Bain Capital is considering joining private equity firms TPG and KKR in their talks to take the disk-drive company private “in what could be a $10 billion to $12 billion deal.” The Journal sources the story to “people familiar with the matter.”
After a 22% rally on Friday following the company’s disclosure that it is considering going private, the company has a had cap of $7.3 billion.
The piece says financing a Seagate buyout “likely will not be an issue.”
STX this morning is up 76 cents, or 4.9%, to $16.27.
Given Seagate has about $2.5 billion in debt, and around 471.8 million shares out, a $12 billion enterprise valuation would imply a buyout price just north of $20 a share.