Stockholders OK Cherokee Sale to GRN Industries
GRN Industries said its $170-million takeover of Cherokee Group, a Sunland apparel maker, was approved by Cherokee’s stockholders and should be completed this week.
GRN was organized for the takeover by an investor group that includes Cherokee President Robert Margolis and other senior Cherokee executives. GRN already had acquired 49.9% of the company through a $14-a-share cash tender offer last fall and plans to buy the remaining shares for $14 each in cash and bonds.
Cherokee said the transaction was approved by 68.9% of the shares entitled to vote at a special meeting, while 11.6% voted against it.
Separately, Cherokee said it will offer $117.5 million of 10-year notes to the public to help finance the acquisition.
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