According to the exchange agent, Broadridge Corporate Issuer Solutions, LLC, 69,142,112 shares of Cummins common stock were validly tendered and not properly withdrawn, including 36,902,099 shares that were tendered by notice of guaranteed delivery and 1,006,609 shares that tendered in aggregate by “odd-lot” shareholders (holders of fewer than 100 shares) not subject to proration. Cummins intends to accept 5,574,050 of the tendered shares in exchange for the 67,054,726 shares of Atmus common stock owned by Cummins. Because the exchange offer was oversubscribed, Cummins is accepting only a portion of the shares of its common stock that were validly tendered and not validly withdrawn, on a pro rata basis in proportion to the number of shares tendered. Shareholders who owned fewer than 100 shares of Cummins common stock, or an “odd-lot,” who have validly tendered all of their shares, will not be subject to proration, in accordance with the terms of the exchange offer.
COLUMBUS, Ind., March 11, 2024--(BUSINESS WIRE)--Today, Cummins Inc. (NYSE: CMI) ("Cummins") announced the final exchange ratio for its previously announced split-off exchange offer to Cummins shareholders to exchange their shares of common stock of Cummins for shares of common stock of Atmus Filtration Technologies Inc. (NYSE: ATMU) ("Atmus") currently held by Cummins.
For each share of Cummins common stock that is validly tendered and not properly withdrawn by shareholders and that is accepted by Cummins pursuant to the exchange offer, Cummins will deliver 12.0298 shares of Atmus common stock to or at the direction of any such tendering shareholder.
Based on the final exchange ratio, Cummins currently expects to accept for exchange approximately 5,574,051 shares of Cummins common stock if the exchange offer is fully subscribed. Because the exchange offer will be subject to proration if the exchange offer is oversubscribed, the number of shares of Cummins common stock that Cummins accepts in the exchange offer may be less than the number of shares validly tendered by Cummins shareholders.
The exchange offer is currently scheduled to expire at 12:00 midnight, New York City time, at the end of the day on March 13, 2024, unless terminated or extended.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the dealer managers for the exchange offer.
Seems there's a pretty large short squeeze going on right now on ATMU, where something like 70% shares are short in anticipation of the exchange. Would love to compare notes if anyone else is actively trading this on the ATMU side with options.
Tender was oversubscribed, so who hedged their positions above 100 shares of Cummins with a short on Atmus are now in need to close the short. Exchange will occur on 18th March. 80.4% of the total Atmus shares will be distributed though this tender.
Yeah, but watching now the price action of both CMI and ATMU post tender, seems like somethings up beyond the short squeeze story. Index? Big fund taking position? I sold immediately Tuesday after receiving the shares and shares went down to 25 only to rocket up again.
According to the exchange agent, Broadridge Corporate Issuer Solutions, LLC, 69,142,112 shares of Cummins common stock were validly tendered and not properly withdrawn, including 36,902,099 shares that were tendered by notice of guaranteed delivery and 1,006,609 shares that tendered in aggregate by “odd-lot” shareholders (holders of fewer than 100 shares) not subject to proration. Cummins intends to accept 5,574,050 of the tendered shares in exchange for the 67,054,726 shares of Atmus common stock owned by Cummins. Because the exchange offer was oversubscribed, Cummins is accepting only a portion of the shares of its common stock that were validly tendered and not validly withdrawn, on a pro rata basis in proportion to the number of shares tendered. Shareholders who owned fewer than 100 shares of Cummins common stock, or an “odd-lot,” who have validly tendered all of their shares, will not be subject to proration, in accordance with the terms of the exchange offer.
https://investor.cummins.com/news/detail/643/cummins-announces-preliminary-results-of-atmus-filtration
Option to subscribe to tender is still open in Interactive Brokers. Based on my understanding it closes on the 13th March.
COLUMBUS, Ind., March 11, 2024--(BUSINESS WIRE)--Today, Cummins Inc. (NYSE: CMI) ("Cummins") announced the final exchange ratio for its previously announced split-off exchange offer to Cummins shareholders to exchange their shares of common stock of Cummins for shares of common stock of Atmus Filtration Technologies Inc. (NYSE: ATMU) ("Atmus") currently held by Cummins.
For each share of Cummins common stock that is validly tendered and not properly withdrawn by shareholders and that is accepted by Cummins pursuant to the exchange offer, Cummins will deliver 12.0298 shares of Atmus common stock to or at the direction of any such tendering shareholder.
Based on the final exchange ratio, Cummins currently expects to accept for exchange approximately 5,574,051 shares of Cummins common stock if the exchange offer is fully subscribed. Because the exchange offer will be subject to proration if the exchange offer is oversubscribed, the number of shares of Cummins common stock that Cummins accepts in the exchange offer may be less than the number of shares validly tendered by Cummins shareholders.
The exchange offer is currently scheduled to expire at 12:00 midnight, New York City time, at the end of the day on March 13, 2024, unless terminated or extended.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the dealer managers for the exchange offer.
Final exchange ratio is 12.0298.
Seems there's a pretty large short squeeze going on right now on ATMU, where something like 70% shares are short in anticipation of the exchange. Would love to compare notes if anyone else is actively trading this on the ATMU side with options.
Tender was oversubscribed, so who hedged their positions above 100 shares of Cummins with a short on Atmus are now in need to close the short. Exchange will occur on 18th March. 80.4% of the total Atmus shares will be distributed though this tender.
Yeah, but watching now the price action of both CMI and ATMU post tender, seems like somethings up beyond the short squeeze story. Index? Big fund taking position? I sold immediately Tuesday after receiving the shares and shares went down to 25 only to rocket up again.
Anyways, has been interesting.