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.
