FRETTER ANNOUNCES PROPOSAL
FRETTER ANNOUNCES PROPOSAL LIVONIA, Mich., Oct. 14 /PRNewswire/ -- Fretter, Inc.
(NASDAQ-NMS: FTTR) today announced that its board of directors had received a proposal from Messrs. Oliver and Howard Fretter and John Hurley and two trusts for the benefit of certain of their family members (the "Group") to acquire all shares of the company's stock not owned by members of the Group. Pursuant to the proposal, each public stockholder would receive $3 per share in cash, except for shareholders who received their shares as part of Fretter's acquisition in 1991 of Fred Schmid Appliance & TV Co., who will receive $4 per share in cash. Oliver Fretter indicated that the acquisition would be effected through one or more transactions that might include a merger, negotiated purchase or some combination thereof.
The proposal is subject to a number of conditions, including completion of a satisfactory business and legal analysis relating to the structure of the proposed acquisition, obtaining satisfactory agreements for the refinancing of the company's outstanding debt or obtaining lenders' consents to the transaction, obtaining satisfactory commitments for the financing of the proposed acquisition and continuing operations of the company, receipt of a fairness opinion from an independent financial adviser, obtaining all necessary approvals (including board of directors' approval and necessary shareholder approving votes), and the execution of definitive documentation related to the proposed transactions. In his letter, Oliver Fretter anticipates that further details relating to the structure of the proposed acquisition would be made available to the board in the near future, with a view to consummating the proposed transaction in early 1993. The board of directors has formed an independent committee of outside directors of the company to consider the proposal and make a recommendation to the full board when such details become available. The Group members own approximately 76 percent of all of the presently issued company stock. Oliver Fretter is chairman of the board of the company. John Hurley is a director and president. Howard Fretter, Oliver Fretter's son, is a director and vice president - Planning and Real Estate and secretary. Fretter, Inc. is a leading specialty retailer of home entertainment products, consumer electronics and appliances, with 85 store locations in Illinois, Indiana, Massachusetts, Michigan, New Hampshire and Ohio under the name Fretter and in Colorado, Montana and Wyoming through its wholly owned subsidiary under the name Fred Schmid Appliance & TV Co. The company is traded on the NASDAQ NMS under the symbol "FTTR". -0- 10/14/92 /CONTACT: Stuart Garson of Fretter, Inc., 313-353-8511/ (FTTR) CO: Fretter, Inc. ST: Michigan IN: REA SU:
JG-SM -- DE027 -- 9908 10/14/92 13:21 EDT
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|Date:||Oct 14, 1992|
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