Acquisition of Arden Group, Inc. by TPG Capital May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the acquisition of Arden Group, Inc. (ARDNA) by TPG Capital. On December 20, 2013, Arden Group announced the signing of a definitive merger agreement pursuant to which TPG will acquire Arden for $126.50 per share in cash for each share of Arden Group common stock.
Is the Proposed Merger Best for Arden Group and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Arden Group is undertaking a fair process to obtain maximum value and adequately compensate Arden Group shareholders in the merger.
As an initial matter, the $126.50 consideration represents a one day discount of 2% based on the Arden Group’s closing price on December 20, 2013, and premium of only 14% based on Arden Group’s closing price on July 12 2013, the trading day before the announcement that the company was evaluating strategic alternatives, including a potential sale of the company. Notably, Arden Group’s stock has consistently traded above the $126.50 offer price since the July announcement, closing as high as $135.82 on September 10, 2013.
Further, Arden Group reported same store sales increases in the company’s sixteen supermarkets for both the third quarter and the nine months ended September 28, 2013. The company’s stores also realized an increase in the total number of transactions in 2013 as compared to the previous year.
Given these facts, Robbins LLP is examining the Arden Group board of directors’ decision to sell the company to TPG now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects, and whether they are seeking to benefit themselves.
Arden Group shareholders have the option to file a class action lawsuit to ensure the board of directors properly evaluates the proposal to obtain the best possible price for shareholders and the disclosure of material information.
Arden Group shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.