La Pizza Loca Offers To Buy Chicago Pizza At
$2.00/Sh (CHGO)
Newstraders - December 15, 1998 08:10
(NewsTraders.com)-- A group including La Pizza Loca Inc. and its President, Alex
Meruelo, revealed holding a 7.4% equity stake in Chicago Pizza Brewery (CHGO) and
is offering to acquire the entire company for $2.00 per share in cash, according to an
original Schedule 13D.
In a December 14 letter to Chicago Pizza, the group said it will pay $2.00 per share for
all Chicago Pizza shares, except those held by certain members of management. The
group will provide up to $500,000 in equity financing for the bid and will obtain the
remaining funds through a bank credit facility that will be secured by the group's
assets and certain Chicago Pizza assets. The group has presented this proposal to an
unidentified bank and it has indicated its willingness to provide the necessary
financing. The offer will not be subject to the group obtaining financing, however.
The group said it is prepared to begin due diligence and negotiate the definitive
terms of the agreement, and has requested access to Chicago's books, records and
other documents. The group added that it is willing to enter into a confidentiality
agreement before commencing due diligence.
The agreement would be subject to approval of the merger by the board of directors
of both companies as well as shareholders, successful due diligence, and approval
by regulatory authorities.
An acceptable agreement between the group and two Chicago Pizza management
members would also be required for the deal to proceed.
The group revealed recent purchases of Chicago Pizza common stock between
September 29 and December 7 in the open market.
Copyright 1998 NewsTraders Inc. All Rights Reserved Tuesday, December 15, 1998
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