NEW YORK (TheStreet) -- Shares of Meadowbrook Insurance Group (MIG) are skyrocketing, higher by 19.64% to $8.53 on heavy volume in afternoon trading Wednesday, after the company announced that it has agreed to be acquired by China's Fosun International for $8.65 per share in cash.
Analysts at FBR Capital said it views Meadowbrook's acquisition deal as a positive for its shareholders and does not think there will be any regulatory issues with a Chinese buyer.
Fosun International will acquire Meadowbrook Insurance Group for about $433 million, and said it plans to use the profits from the company to support its long-term investments.
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The Michigan-based casualty insurance company is a specialty commercial insurance underwriter and insurance administration services company.
About 3.24 million shares of Meadowbrook Insurance Group traded hands as of 2:44 p.m. ET, compared to its average trading volume of about 178,651 shares per day.
Separately, TheStreet Ratings team rates MEADOWBROOK INS GROUP INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MEADOWBROOK INS GROUP INC (MIG) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and weak operating cash flow."