Foodarama Mulls Management Proposal to Go Private
FREEHOLD, N.J. -- Foodarama Supermarkets, Inc., which operates ShopRite supermarkets in central New Jersey, said Friday that it had received a nonbinding proposal from a group headed by Foodarama chairman and founder Joseph Saker and c.e.o. Richard Saker to take the company private for $52 per share, according to a published report. Foodarama's board has formed a committee of three independent directors to consider the proposal.
According to the Foodarama, the purchaser group, which owns 51 percent of the company's shares, was informed that a holder of approximately 12 percent of the outstanding shares wished to take part in a deal valued at $52 per share.
The offer is subject to conditions, among them the consent of Elizabeth, N.J.-based Wakefern Food Corp., the retailer-owned cooperative warehouse that owns the ShopRite name and of which Foodarama is the biggest member, and that the acquiring company hold a minimum of 90 percent of Foodarama's common stock when a tender offer is completed.
Joseph Saker retired as an executive officer of Foodarama in October but is still the board's chairman. His son, Richard, succeeded him as c.e.o. in 2003.
Foodarama operates 26 supermarkets, two liquor stores, and a garden center under the ShopRite banner, in addition to a food-processing facility and a baking facility to supply the stores.
According to the Foodarama, the purchaser group, which owns 51 percent of the company's shares, was informed that a holder of approximately 12 percent of the outstanding shares wished to take part in a deal valued at $52 per share.
The offer is subject to conditions, among them the consent of Elizabeth, N.J.-based Wakefern Food Corp., the retailer-owned cooperative warehouse that owns the ShopRite name and of which Foodarama is the biggest member, and that the acquiring company hold a minimum of 90 percent of Foodarama's common stock when a tender offer is completed.
Joseph Saker retired as an executive officer of Foodarama in October but is still the board's chairman. His son, Richard, succeeded him as c.e.o. in 2003.
Foodarama operates 26 supermarkets, two liquor stores, and a garden center under the ShopRite banner, in addition to a food-processing facility and a baking facility to supply the stores.