Sport Chalet Inc. announced that enough of its shareholders have agreed to sell their shares to Vestis Retail Group LLC to consummate a merger with the company, which owns Eastern Mountain Sports and Bob's Stores. However, time is running out for the California retailer's shareholders to get top dollar.
While shareholders controlling a least a majority of SPCH's voting shares have tendered their shares as recommended by Sport Chalet's board of directors, the tender price for their shares will be reduced to $1.04 from $1.20 if atleast 90 percent of voting shares are not tendered by midnight Friday, Aug. 1.
“To increase the likelihood of receiving consideration of $1.20 per Share, Sport Chalet stockholders are encouraged to tender their Shares in the Offer prior to the Expiration Time,” Sport Chalet said in a statement released Thursday. “Any Shares not acquired in the Offer are expected to be acquired pursuant to a second-step merger at the same price as paid for Shares tendered in the Offer.”
“To increase the likelihood of receiving consideration of $1.20 per Share, Sport Chalet stockholders are encouraged to tender their Shares in the Offer prior to the Expiration Time,” Sport Chalet said in a statement released Thursday. “Any Shares not acquired in the Offer are expected to be acquired pursuant to a second-step merger at the same price as paid for Shares tendered in the Offer.”
As previously described, the Board of Directors of Sport Chalet unanimously recommends that stockholders of Sport Chalet tender their shares in the Offer.
If the threshold of 90 percent of each class is not reached, the $1.20 price will be reduced to $1.04, and the Offer will be extended for 10 business days, during which stockholders will have withdrawal rights described in the offer to purchase previously distributed to Sport Chalet stockholders.
