HG Vora Capital Management has proposed to take full ownership of Ryder System, a US-based transportation and fleet management solutions provider, by acquiring shares that it already didn’t own in the latter for $86 per share in cash.

The proposed deal from the investment firm values the publicly-listed Ryder System at around $4.4bn, reported Bloomberg.

Currently, HG Vora holds a stake of 9.9% in the fleet management firm. HG Vora said that it believes to be the largest actively managed shareholder of Ryder System, based on publicly available information.

In a filing with the US Securities and Exchange Commission (SEC), HG Vora said that the proposed purchase price is a 24.8% premium to the 30-day trailing volume weighted average price of Ryder System’s common stock. It is also a premium of 20.3% to the closing price of the common stock on 12 May 2022, stated the hedge fund.

HG Vora stated: “Our interest in Ryder began after management made a series of strategic decisions to improve the fundamental profile of the Company by prioritising adequate returns on capital over fleet expansion, investing in higher growth asset light business segments, underwriting to more conservative residual assumptions and returning capital to shareholders.

“We value the management team’s acumen and deep experience operating the business and are excited about the opportunity to realise Ryder’s full potential in the private markets.”

Ryder System confirmed that it has received an unsolicited indication of interest from the investment firm.

The company said that its board of directors will carefully study and assess the indication of interest for determining the next step that it thinks is in its best interest as well as that of its shareholders.

Based in Miami, Ryder System offers leasing, rental, and maintenance, transportation services, freight brokerage, e-commerce fulfillment, used vehicle sales, professional drivers, and last-mile delivery services, among others.

The company operates across the US, Canada, Mexico, and the UK. It is claimed to manage close to 239,000 commercial vehicles and operates over 330 warehouses.