Ares Capital makes rival bid for 99 Cents Only Stores.
7 October 2011 - US private equity firm Ares Capital Corp (NASDAQ:ARCC) has made a takeover offer for US discount retailer 99 Cents Only Stores (NYSE:NDN), trumping the one received from Leonard Green & Partners, Reuters cited an insider as saying.
According to a report by the New York Post, Ares' offer was at some USD22 (EUR16.4) per share, or total of USD1.55bn, compared to Leonard Green's bid of about USD20 per shares, totalling USD1.41bn.
None of the three companies made a comment to Reuters.
US private equity firm Apollo Management (NASDAQ:APO) has abandoned plans to bid for the retailer as it failed to secure financing, after it was reported by the New York Post in September to be considering a USD24 per share offer, the paper said.
The report from September has also said that the chain's founding family Schiffer/Gold, controlling one-third of its stock, would agree to back either of the private equity firms winning the bidding race.
99 Cents Only Stores runs 285 stores.Country: , USASector: Wholesale/RetailTarget: 99 Cents Only StoresBuyer: Leonard Green & Partners LP, Ares Capital Corporation Vendor: The Schiffer/Gold familyDeal size in USD: 1.5bnType: LBOStatus: BiddingComment: Deal size refers to Ares' bid.