Tegna is a media company the owns local television stations and a digital advertising platform. In February Standard General offered to take TGNA private for $24/sh. Shareholders recently approved the offer, which is expected to close in the second half of 2022. The share price recently dipped to $19.85, offering investors an opportunity to earn 26% while waiting for the deal to close.
Obviously Wall Street is concerned that the deal might not close. Even if it fails, which is highly unlikely at this late stage, the shares were trading in the $17 range prior to the buyout offer. The company was undervalued at that time, earning over $2/sh and trading at a PE of 6. Downside risk seems limited even if the deal impossibly blows up.
I sold out at $23 after the buyout offer was announced, but it seems like TEGNA is offering a rare opportunity to profitably park cash while waiting for this bear market to shake out.