BOISE, ID - After more than a year of speculation, the proposition of a merger between Albertsons and Rite Aid this February seemed like it would put an end to speculation and affirm a future trajectory for the drug store. In the ensuing months, though, Rite Aid investors have been rallying to stop the merger, citing potentially disagreeable terms. This Thursday the drug store chain announced plans to put those qualms to rest; Rite Aid has established a meeting date for a special meeting of stockholders of record as of June 22, 2018 to, among other things, consider and vote on the company’s proposed merger with Albertsons.
The meeting, to be held August 9, 2018, will take place at 8:30 a.m. Eastern Time at the office of Skadden, Arps, Slate, Meagher & Flom LLP at 4 Times Square, New York, NY 10036, according to a press release. In that release, Rite Aid noted that “the consummation of the merger remains subject to various closing conditions, including but not limited to the approval of the Merger Agreement by holders of a majority of the outstanding shares of Rite Aid stock entitled to vote on the merger.”
Earlier this month, a press release by individual Rite Aid shareholder Chris Komatinsky called for an investigation of all activity dating back to when the drug store chain’s previously planned merger with Walgreens failed.
"Personally, I would like to see an independent investigation of CEO and BOD actions from just before the termination of the WBA merger agreement to present to make sure prior actions weren’t contrary to the benefit of stockholders but that can be discussed/decided as a larger stockholder group,” Komatinsky wrote in his press release. “Small shareholders own a large percentage of Rite Aid shares but often have a difficult time getting organized to have a large enough total of shares owned to have a voice.”
Rite Aid’s management responded to Komatinsky’s claims by reaffirming that the Albertsons merger would “deliver compelling long-term value for Rite Aid shareholders and its customers.”
“In the face of a consolidating and evolving marketplace, Rite Aid’s board and management team evaluated a range of strategic options with the assistance of outside advisors,” said Rite Aid at that time. “After conducting rigorous due diligence and engaging in extensive negotiations with Albertsons, Rite Aid, with the unanimous approval of its board, agreed to terms for the merger that it believes will provide significant value for its shareholders.”
Will activist investors block Albertsons from acquiring the chain? AndNowUKnow will continue to report with updates.
