Leaning to ‘yes,’ True Value voting extended
As True Value members consider an offer to sell 70% equity of the company to ACON Investments, Chicago-based True Value Company has added a week to the voting deadline.
Early Friday, the company announced to members that special meeting of the board on April 20 will share the voting results with the members. The original vote deadline was April 12, just before midnight. It’s now April 19, just before midnight.
So far, votes have been largely in favor of the proposal announced March 15 to dramatically change the structure of the True Value, sell a majority stake to a private equity company and unlock dealers investment. The company said 72% of the proxies have been counted, and 85% have voted for the proposal.
In an announcement to dealers today, the co-op said: “based on the massive vote support, our plan remains to close the transaction on or around April 20th following the Special Meeting.”
The additional week was described in a statement as related to a lawsuit brought by a member who sought more information. The lawsuit was rejected by the Delaware Court Friday morning, True Value said.
True Value’s statement reads:
“As of today, we are pleased to report that we have received a majority member vote with 72% of the proxies voted and 85% voted YES to the proposed transaction. Although we have already achieved the required vote, we supplemented information to the Proxy in response to certain litigation relating to the Transaction by one member. As required legally when providing additional information, we extended the proxy period by one week to April 20. In a ruling on the lawsuit today, the Delaware Court rejected the relief sought in the complaint to stop the transaction and based on the massive vote support, our plan remains to close the transaction on or around April 20th following the Special Meeting.”
According to a report in Law360, the Delaware Chancery Court suit was filed last week seeking to block the transaction and alleging that terms were inadequately disclosed and the price was unfair.
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