Advertisement
Share

Bid made for Charlotte Russe

the associated press

Women’s retailer Charlotte Russe Holding Inc. received a takeover offer from a shareholder in a deal valued at nearly $200 million.

The company’s shares jumped $1.26 to $8.15.

KarpReilly Capital Partners and H.I.G. Capital said in a statement that they had offered $9 to $9.50 a share, or $188.1 million to $198.6 million, based on 20.9 million shares outstanding. The offer represents a premium of 31% to 38% to Tuesday’s close of $6.89.

KarpReilly said it owns a 5.4% stake in San Diego-based Charlotte Russe. The investment firm said it originally approached the retailer about a potential deal almost a year ago, but it was rebuffed by the company’s board.

Advertisement

“We believe that we and H.I.G. can offer Charlotte Russe stockholders superior value to what they can realistically expect to receive remaining as stockholders of the current public company,” said Allan Karp, a partner at KarpReilly.

A Charlotte Russe representative could not immediately be reached for comment.


Advertisement