Home » Harris Teeter Shareholders To Vote On Kroger Acquisition Oct. 3
National Store News

Harris Teeter Shareholders To Vote On Kroger Acquisition Oct. 3

Harris Teeter Supermarkets Inc. has scheduled a special shareholder meeting for 10 a.m. Oct. 3 related to its proposed merger with The Kroger Co., the Charlotte Business Journal reports.

In July, Cincinnati-based Kroger announced its intentions to acquire Harris Teeter for approximately $2.5 billion, including assumption of $100 million in debt. The all-cash transaction is valued at $49.38 per share. But shareholders must first approve that deal.

“Harris Teeter shareholders must vote to approve the merger proposal as a condition for the merger to occur. If the Harris Teeter shareholders fail to approve the merger proposal, the merger will not occur,” states a company filing this week with the U.S. Securities and Exchange Commission.

That vote will be held at Harris Teeter’s headquarters in Matthews, N.C.

In a letter to shareholders, Harris Teeter CEO Thomas Dickson asks shareholders to vote in favor of the proposal. The letter also asks shareholders to vote in favor of merger-related compensation for named executive officers, including Dickson. It notes Harris Teeter’s board of directors has unanimously approved the merger agreement and related actions.

The letter states that an affirmative vote of the majority of shares is required to approve the merger agreement. Failure to vote will count as a vote against the proposal, it notes.

“Your vote is very important regardless of the number of shares you own,” it says.

In a regulatory filing this month, Harris Teeter said the deal may close during the fourth quarter, pending shareholder and regulatory approval. As part of the sale, Harris Teeter would keep its name, and its brands would live on, according to the Journal. Plans call for continued growth of the chain, including new stores. Harris Teeter currently operates 212 stores in eight states and Washington, D.C. Kroger would benefit by being able to expand its footprint and gain synergies. It operates more than 2,400 stores under two dozen banners in 31 states.

But not all shareholders are on board with the acquisition, the Journal reports. Two separate lawsuits have been filed in Mecklenburg Superior Court seeking to block the acquisition by Kroger.

Featured Photos

Featured Photo PLMA Annual Private Label Trade Show
Donald E. Stephens Convention Center
Chicago, Illinois
Share via
Copy link
Powered by Social Snap