Robbins Umeda LLP Is Investigating PRIMEDIA Inc. Acquisition for Shareholders
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of PRIMEDIA Inc. (NYSE: PRM). The firm has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of PRIMEDIA in connection with their efforts to sell the company to affiliates of TPG Capital.
On May 16, 2011, PRIMEDIA announced it has entered into a definitive agreement to be acquired by affiliates of TPG Capital. Under the terms of the agreement, PRIMEDIA shareholders will receive $7.10 per share in cash for each share of PRIMEDIA common stock they own. The transaction is expected to be completed in the third quarter of 2011.
The investigation focuses on whether PRIMEDIA’s board is undertaking a fair process to obtain maximum value for its shareholders in light of the company’s recent positive financial performance. On April 28, 2011, the company reported adjusted EBITDA of $17.4 million, a $1.7 million increase compared to first quarter 2010. Further, adjusted EBITDA margin increased to 32.3% from 26.6% for first quarter 2010. Of particular note, shareholders holding approximately 58% of the outstanding PRIMEDIA common stock have executed a written consent approving the transaction. Therefore, absent legal action, this transaction could close without the approval of the majority of PRIMEDIA’s public shareholders that did not enter into the consent agreements.
If you own stock in PRIMEDIA and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.