Rite Aid Corp. has confirmed it rejected a non-binding, off-market proposal from Spear Point Capital Management to acquire all of the outstanding shares of the company’s common stock.
Among the defects in the proposal cited by the board in making its determination, Rite Aid noted, Spear Point provided no evidence of financing, required multiple months of exclusivity, and then called for Rite Aid to spend months soliciting competing offers. Also, Spear Point conditioned its proposal on none of the company’s debt becoming due and payable upon a change in control, which contradicts the terms of almost all Rite Aid debt instruments. In addition, the company asserted, Spear Point has no track record of acquiring public companies that are of Rite Aid’s size and complexity.
Rite Aid added that the company remains focused on executing its growth strategy through continued leadership as a full-service pharmacy company and that it will respond to credible proposals that will enhance shareholder value.
