Chico’s board rejects latest acquisition offer from Sycamore

Board of directors of Chico's FAS, Inc. has unanimously rejected the unsolicited proposal received from Sycamore Partners on June 19, 2019 to acquire all of the outstanding shares of the company for 3 dollars per share in cash. The company said that its board believes Sycamore's proposal substantially undervalues Chico's FAS and is not in the best interests of the company’s shareholders.

Commenting on the development, David Walker, Chair of the board, said in a statement: "We are pleased with the strong support we have received from numerous Chico's FAS shareholders for the actions underway to improve the company's performance. Notably, shareholders have also expressed their belief that Sycamore's proposal significantly undervalues the company. We are making progress on our new operating priorities and the search for a new CEO, and will remain focused on continuing to execute in these areas."

The company’s board had earlier reviewed and rejected Sycamore's proposal on May 10, 2019 to acquire Chico's for 3.50 dollars per share in cash.

Picture:Chico's press room

 

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