Carr Gottstein Foods Announces Tender Offer; Offer Designed To Provide Immediate Cash Benefit To Shareholders.ANCHORAGE, Alaska--(BUSINESS WIRE)--Oct. 12, 1995--Carr Gottstein Foods Co. (NYSE NYSE See: New York Stock Exchange : CGF CGF Commonwealth Games Federation (UK) CGF Computer Graphics Forum CGF Computer Generated Forces CGF Chlorella Growth Factor CGF Charging Gateway Function CGF Crystal Growth Furnace CGF College Golf Foundation ), the largest food and drug retailer in Alaska, today announced its intention to make a tender offer to purchase up to 7.5 million shares of its issued and outstanding common stock, representing approximately 49 percent of the total outstanding shares. The purchase price in the offer is $11.00 per share. The offer is open to all shareholders of CGF, and represents a premium of approximately 80 percent over the closing market price on October 12 of $6.125. If the tender offer is oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. by shareholders, shares will be accepted on a pro-rata basis. The Company expects to commence the tender offer promptly and it will remain open for a minimum of twenty business days from the commencement date. The tender offer is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent obtaining the necessary financing to fund the offering. The Company expects to obtain the financing through a private placement of debt securities. "We believe the public equity markets have undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. the Company's equity in light of its commanding position within the Alaska food and drug retail marketplace,"said Mark Williams, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Carr Gottstein Foods Co. The Company said it has invested more than $100 million in the past 5 years on capital improvements, store remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling and expansion, and its future capital expenditure needs will be lower than they have been in the past. "The tender offer is designed to unlock value in the Company's shares for its shareholders," Williams concluded. Carr Gottstein Foods Co. operates 39 stores in Anchorage, Fairbanks, Ketchikan, the Kenai Peninsula and other Alaska communities, as well as Alaska's largest freight company and the state's only full-line food warehouse and distribution center. Annual revenues in 1994 were $577.1 million. CONTACT: Carr Gottstein Foods Co. Don Anderson Chief Financial Offer 907-564-2124 or Robert Mead Robinson Lake Sawyer Miller (212) 484-6701 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion