Fidelity National Financial Inc (NYSE:FNF) recently announced that they would be exercising their consideration mix related to the previously announced merger with Lender Processing Services Inc (LPS) by increasing the cash component of the total consideration by approximately $511 million. This would also lead to decreasing the stock component of the total consideration by the same amount. But the total consideration might remain unchanged.
On the basis of this announcement made by Fidelity National Financial Inc, the company would now pay around 82% of the total consideration for the shares belonging to LPS out of the common stock in cash and 18 percent of the shares of Fidelity National Financial Inc. But this is subject to adjustments which are described in the definitive agreement.
The definitive agreement was signed in the month of May under which it is mentioned that Fidelity National Financial Inc would acquire all the outstanding stocks of Lender Processing Services Inc for $33.25 per common share for a total equity value approximating to about $2.9 billion. This consideration was decided to be paid 50% in common stock of Fidelity National Financial Inc and another 50% in cash.
After this, Fidelity National Financial Inc also announced an adjustment to the consideration mix by increasing the cash component of the total consideration by $500 million and correspondingly decreasing the stock component of the total consideration by an equal amount. Based on this announcement made by Fidelity National Financial Inc, the company had to pay 67% of the shares of the common stock in cash and 33% in the shares of Fidelity National Financial Inc common stock.
Fidelity National Financial Inc is a leading provider of mortgage services, title insurance and also other kinds of diversified services which are related to the world of finance.
