Vitamin Shoppe news for Monday includes a new buyout bid for the nutritional supplements retailer.
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According to Vitamin Shoppe (NYSE:VSI), it received a single bid during the go-shop period of its merger agreement with Liberty Tax (NASDAQ:TAXA). The company doesn’t go into much detail about this bid, including not mentioning where it comes from or what the offer was for.
What the Vitamin Shoppe news does note is that this bid may result in a superior offer from Liberty Tax. However, VSI also notes that its Board of Directors and the Special Committee of the Board of Directors are still maintaining their recommendation to merge with Liberty Tax.
Even with Vitamin Shoppe continuing to recommend the Liberty Tax merger, it does say that it will be negotiating with the bidder from the go-shop period. It also points out that this doesn’t mean a deal will move forward with them or that it will result in a superior offer. The company also says that negotiations could end at any time.
The current offer from Liberty Tax for Vitamin Shoppe is sitting at $6.50 per share in cash, or $208 million. This offer represents a 43% premium to the stock’s closing price prior to the announcement of a deal. It is also a 59% premium to the 30-day volume weighted average price for the period ended on Aug. 7, 2019.
VSI stock was up 9% as of Monday afternoon and is up 24% since the start of the year.
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As of this writing, William White did not hold a position in any of the aforementioned securities.