BIRMINGHAM, Ala. (AP) — The family that controls Books-A-Million Inc. is offering to buy the rest of the bookseller's shares for about $22.9 million deal that would make it a private company.
Executive Chairman Clyde Anderson and other family members currently have about a 53 percent stake in the company.
They are offering Books-A-Million shareholders $3.05 per share in cash for the stock they don't already own. This is a 20 percent premium to the company's Friday closing price of $2.55.
The company currently has approximately 16 million outstanding shares, according to Fact Set.
Books-A-Million said the offer values the total company at about $48.8 million.
Anderson said in the proposal letter to Books-A-Million that the proposed deal would be financed with borrowings under the company's existing credit line as long as there are sufficient funds available. The letter also states that the family does not plan to move forward with a deal unless a special committee created by Books-A-Million recommends it to the company's board.
The Birmingham, Ala., company's management and workers are expected to remain with the business.
Last month Books-A-Million gave President and Chief Operating officer Terrance G. Finley the additional role of CEO and named Anderson as executive chairman. Anderson had served as CEO since 2009.
The company also announced last week that Chief Financial Officer Brian White resigned to pursue other opportunities.
Books-A-Million has 255 stores in 31 states and the District of Columbia under its own brand and others including Books and Co., 2nd & Charles, and Bookland.
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