KNIGHTSBRIDGE BUYS FREDERICK’S
LOS ANGELES — Frederick’s of Hollywood said Tuesday that its acquisition by Knightsbridge Capital Corp. had been completed. The purchase price, as reported, was $7.75 a share.
The acquisition had been contested in court by minority shareholders, after the board refused to consider another offer at $9 a share from Veritas Capital Corp. The board argued that the offer was ignored since Knightsbridge already controlled 54.04 percent of Frederick’s and had stated it would reject the $9 offer. The Delaware Court of Chancery this week turned down the minority shareholders’ petition for a restraining order against the Knightsbridge acquisition.
With 9.7 million shares outstanding, the $7.75 offer put a value on the lingerie specialist of $69.7 million.
In its most recent financial report, for the nine months ended May 31, Frederick’s posted net profit of $3.5 million and sales of $118.7 million. With the acquisition by Knightsbridge, it is not longer a public company.
Frederick’s operates more that 200 specialty stores in 39 states and a mail order division.