PARK RIDGE, N.J. -

In the latest step of the Hertz-Dollar Thrifty deal announced last month, Hertz Global Holdings said Monday that it has initiated a cash tender offer to buy all outstanding shares of Dollar Thrifty Automotive Group’s common stock.

The two companies entered a definitive merger agreement on Aug. 26, as reported previously in Auto Remarketing.
 
Regarding Monday’s news, officials noted in the Hertz statement that once the tender offer has successfully closed, DTAG stockholders will receive $87.50 per share in cash for each share of DTAG common stock validly tendered and not validly withdrawn in the offer, without interest and less any applicable withholding taxes.

Officials noted that Hertz was set to file a tender offer statement on Schedule TO — which sets the terms of the offer in more detail — with the Securities and Exchange Commission on Monday.

“Additionally, Dollar Thrifty will file with the SEC a solicitation/recommendation statement on Schedule 14D-9 that includes the unanimous recommendation of Dollar Thrifty's board of directors that Dollar Thrifty stockholders accept the tender offer and tender their shares,” officials noted.

The expiration of the tender offer is at 12 a.m. (EST) on Oct. 5, unless there is an extension that adheres to the terms of the merger agreement and applicable SEC rules and regulations.

“The closing of the tender offer is subject to customary terms and conditions, including the acquisition by Hertz of a majority of the outstanding shares of Dollar Thrifty common stock on a fully diluted basis, and the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act,” Monday’s statement read.