In a regulatory filing, it was disclosed that Vintage Capital Management, which currently own approximately 6% of the common stock of Rent-A-Center, said in a letter to the company that it is “in a unique position to deliver certain and immediate value to shareholders through an all-cash acquisition at $13.00 per share.” In the letter to the CEO of Rent-A-Center, Vintage Capital Managing Member Brian Kahn added, “However, the value that we are willing to pay, and our interest in pursuing this transaction, is significantly impacted by whether or not our future competitors have access to proprietary information concerning RAC’s assets, including but not limited to store-level financial information and contract terms with Acceptance Now retail partners. Due to the significant amount of work that we and our lenders have completed, as well our familiarity with the Rent-to-Own industry, we are confident that we can complete due diligence, obtain financing commitments, and execute a definitive transaction agreement within 30 days of gaining access to due diligence information. We have engaged legal counsel and we are prepared to immediately engage additional due diligence resources to assist us with an expedited process to complete this acquisition. In recognition of the significant costs that we will incur, and the prospect of certain and compelling value that would be immediately realized by all RAC shareholders, we ask for a 30-day exclusivity period.” Following the filing, Rent-A-Center shares have jumped 11% to $11 per share in pre-market trading.
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