Google Plus Facebook LinkedIn Twitter Vimeo RSS

In effort to save Rite Aid deal, Fred's lines up more money to buy stores

By ,
(Photo / )

Pharmacy chain Fred's Inc. has secured more financing to buy Rite Aid Corp. stores, a key step in the effort to help Walgreens overcome antitrust concerns and win federal approval to purchase Rite Aid.

Tennessee-based Fred's, which operates in 15 southeastern states, informed the Securities and Exchange Commission on Monday that it agreed with lenders to increase store-purchase financing by $450 million, raising the total from $1.2 billion to $1.65 billion.

The move comes as reports late last week suggest that federal antitrust regulators might be poised to block Walgreens' purchase of Rite Aid.

Rite Aid's corporate headquarters are in East Pennsboro Township, Cumberland County.

A proposed $9-per-share acquisition of the pharmacy chain by Illinois-based rival Walgreens was announced in fall 2015, but the deal remains incomplete due to lingering antitrust concerns.

Neither company nor the Federal Trade Commission has commented on the reports.

Fred's in April said it would purchase as many as 1,200 stores if needed, up from a figure of 865 as originally set in a December agreement.

Walgreens has about 8,200 stores nationwide. Rite Aid has about 4,600 stores in 31 states and the District of Columbia.

The new uncertainty has driven Rite Aid stock downward. 

In the wake of news about possible FTC opposition, the company closed trading Friday at $3 per share, down from an opening price of $3.53. It dipped as low as $2.93 during the day. Monday's closing price was $3.

The original deal, as noted, proposed that Walgreens would acquire Rite Aid for $9 per share. But the company's stock lingered below $8 going into 2016.

By May of this year, as delays continued, Rite Aid corporate officials advised stockholders that they should expect $6.50 per share.

More From This Industry

Roger DuPuis

Roger DuPuis

Roger DuPuis covers Cumberland County, health care, transportation, distribution, energy and environment. Have a tip or question for him? Email him at rdupuis@cpbj.com. Follow him on Twitter, @rogerdupuis2.

Leave a Comment

test

Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy

Comments

blackmart apk for Android June 14, 2017 11:55 pm

You are downloading BlackMart alpha Latest APK v0.99.2.93B (992093). One of the great apps for downloading Android Apps. Here you can download blackmart apk Official for Android, it is one of the best alternative for Google Play Store.

om June 14, 2017 12:35 am

Very classy. It is really very useful post to visit. It has got good ideas and innovations in it. Thanks for sharing. Hope to see many more of them. how to get free psn codes

close