LL - LL Flooring gains as investor consortium pushes for sales process talks with F9

2023-06-13 18:02:37 ET

LL Flooring ( NYSE: LL ) rose 4% in after hours trading as investor consortium said it's pushing for the flooring retailer to engage in a sale process after receiving an offer last month.

Howard Jonas, who said he's leading a consortium of investors that maintains an economic interest in more than 5% of LL Flooring ( LL ), wants the company to seriously consider the $5.76 a share offer it received from F9 Investments last month, Jonas wrote in a letter Tuesday to the LL board.

"We believe the F9 Group’s offer of $5.76 per share is a fair starting point for acquisition discussions and that the Board should engage with the F9 Group and immediately enter into a sale process for the company with $5.76 per share as an acceptable floor bid," Jonas wrote in the letter.

Last month, the former founder of Lumber Liquidators, which changed its name to LL Flooring, made an offer for the flooring chain after attempting to buy it in 2019. The founder, Tom Sullivan, through the F9 Group, is trying to combine LL with Cabinets to Go, another home-improvement retailer he founded.

LL shares jumped LL shares jumped 11% on May 25 after Sullivan disclosed in a 13-D filing that he had amassed a stake in LL Flooring with the purpose of pursuing a merger.

LL Holdings ( LL ) confirmed it received an unsolicited, non-binding proposal from Cabinets to Go, the company said in a statement last month. LL's board will carefully review the offer.

LL Holdings ( LL ) short interest is 10.5%

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