Robbins Geller Rudman & Dowd LLP announces an investigation into potential breaches of fiduciary duty by the directors and officers of Franchise Group, Inc. (NASDAQ: FRG) in connection with the May 10, 2023 announcement by Franchise Group that it had agreed to be acquired by a management-led consortium for $30.00 per share – a more than 31% discount from Franchise Group’s 52-week high and a more than 23% discount from the median analyst price target.
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THE COMPANY: Franchise Group, Inc. owns and operates franchise businesses, which includes Pet Supplies Plus, Wag N’ Wash, American Freight, The Vitamin Shoppe, Badcock Home Furniture & More, Buddy’s Home Furnishings, and Sylvan Learning. Franchise Group was formerly known as Liberty Tax, Inc., and changed its name to Franchise Group, Inc. in September 2019.
THE ACQUISITION: On May 10, 2023, Franchise Group announced that it had agreed to be acquired by a consortium led by Franchise Group’s CEO and director, Brian Kahn, as well as by Franchise Group’s executive vice-president, Andrew Laurence. Joining Kahn and Laurence’s management-led buyout are Vintage Capital Management, LLC, B. Riley Financial, Inc., and Irradiant Partners, LP. At the time of the announcement, Kahn and Laurence held more than 36% of the voting power of Franchise Group and, as previously noted, the proposed buyout price is significantly below Franchise Group’s 52-week high and the median analyst price target. If this buyout is consummated, Franchise Group common stock will be delisted from the Nasdaq Global Market and deregistered under the Securities Exchange Act of 1934.
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