NEW YORK, Aug. 21, 2018 /PRNewswire/ -- WeissLaw LLP is
investigating possible breaches of fiduciary duty and other
violations of law by the Board of Directors of KMG Chemicals, Inc.
("KMG" or the "Company") (NYSE: KMG) in connection with the
proposed acquisition of the Company by Cabot Microelectronics
Corporation ("CCMP) (NASDAQ: CCMP). Under the terms of the
acquisition agreement, KMG shareholders will be entitled to receive
$55.65 in cash and 0.20 of a CCMP
share for each KMG share they own, representing consideration of
$77.45 based on CCMP's Aug. 20 opening price.
WeissLaw is investigating whether KMG's Board acted to maximize
shareholder value prior to entering into the agreement.
Notably, the per-share consideration is nearly $2.00 less than the Company's June 12 trading price of $79.35, and $7.55
less than the analyst's target price of $85.00.
Additionally, KMG recently announced positive financial results
for the third quarter of fiscal year 2018. It reported sales
of $118.6 million, reflecting an
impressive growth of 45% year-over-year. The Company also
announced double digit growth in GAAP earnings per-share and GAAP
net income, with record increases in adjusted EBITDA and operating
cash flow.
Finally, the acquisition of KMG is a strategic transaction that
will propel CCMP into leadership position in the industry.
According to CCMP's President and CEO, "KMG's . . . performance
materials business broadens our product offerings into the
fast-growing industry for pipeline performance products and
services."
Given these facts, WeissLaw is investigating whether KMG's Board
acted in the best interests of KMG's public shareholders to
maximize shareholder value prior to entering into the
agreement. If you own KMG shares and would like more
information about your rights or our investigation, or if you have
information to share with us, please contact Joshua Rubin by telephone at
(888) 593-4771 or by email at
stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and
derivative actions for violations of corporate and fiduciary
duties. We have recovered over a billion dollars for
defrauded clients and obtained important corporate governance
relief in many of these cases. If you have information or
would like legal advice concerning possible corporate wrongdoing
(including insider trading, waste of corporate assets, accounting
fraud, or materially misleading information), consumer fraud
(including false advertising, defective products, or other
deceptive business practices), or anti-trust violations, please
email us at stockinfo@weisslawllp.com or fill out the
form on our website,
http://www.weisslawllp.com/kmg-chemicals-inc/
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SOURCE WeissLaw LLP
