Chain of 99c stores to be sold for ... $1.6bn

US DISCOUNT RETAILER 99 Cents Only has reached a deal to be acquired by two investors for… about $1.6 billion.

The company says that two syndicates of private investors have made cash offers of $22 per share to take over the business.

That price is around 7 per cent higher than the price at which its shares had closed yseterday, and 32 per cent more than the retailer’s price before disclosing in March that it had received a buyout proposal.

The deal must be approved by 99 Cents Only shareholders. The retailer’s board is recommending approval.

Members of the company’s founding Schiffer-Gold family say they support the deal and will continue to hold a minority stake.

99 Cents Only shares rose 91 cents, or 4.4 percent, to $21.40 in pre-market trading today.