Hanover Direct Inc. has received an offer from Chelsey Direct LLC to purchase all the common stock that it doesn’t already own for $1.25 per share. The deal would turn Hanover into a privately held firm.
The proposal was made in a letter dated Feb. 23 for Chelsey or an affiliate to enter into a cash merger agreement with Hanover. If the proposal is approved it would leave Chelsey and its affiliates owning all of Hanover’s common stock.
As of Monday the company’s board of directors reportedly had yet to review the offer. A special committee of the board is consisting of independent directors is expected to review it.
Chelsey Direct and its affiliates own a majority of the issued and outstanding common stock of Hanover. Chelsey presently maintains roughly 91% of the voting rights at Hanover.
Network
