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SHONEY'S, INC. ANNOUNCES EXECUTION OF STOCK PURCHASE AGREEMENT WITH R.L. DANNER

 NASHVILLE, Tenn., April 2 /PRNewswire/ -- Shoney's, Inc. (NYSE: SHN) announced today that it has executed a stock purchase agreement with its founder and former Chairman R.L. Danner and certain of his affiliates pursuant to which the company has agreed, subject to the satisfaction of certain conditions, to purchase a total of 4,632,701 shares of the company's common stock at $22 7/8 per share, or a total purchase price of $105,973,035.
 The execution of the stock purchase agreement follows the execution of a letter of intent on March 8, 1993, between the company and Danner. Danner is the company's largest single shareholder and has agreed to sell the 3,735,695 shares of the company's common stock that he owns directly. Affiliates of Danner also have agreed to sell a total of 897,006 shares of the company's common stock pursuant to the stock purchase agreement. The company has approximately 39,605,000 shares outstanding. The purchase price per share of $22 7/8 was the closing price per share of the company's common stock on March 8, 1993.
 The company said that it expects the closing under the stock purchase agreement to occur on or before June 30, 1993. The transaction requires the approval of the company's lending groups and is also subject to obtaining suitable financing for the transaction, completion of appropriate regulatory filings and the receipt of an acceptable opinion regarding the fairness of the transaction and the company's overall financial position.
 Shoney's, Inc. operates and franchises 1,829 Shoney's, Captain D's, Lee's, Pargo's and Fifth Quarter restaurants in 36 states and Canada. The company's common stock is traded on the New York Stock Exchange under the symbol "SHN."
 -0- 4/2/93
 /CONTACT: Taylor H. Henry or W. Craig Barber of Shoney's, Inc., 615-391-5201/
 (SHN)


CO: Shoney's, Inc. ST: Tennessee IN: LEI SU:

KR -- AT013 -- 2673 04/02/93 16:57 EST
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Publication:PR Newswire
Date:Apr 2, 1993
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