LL - LL Flooring jumps after founder offers $5.76 a share for company (update)

2023-05-30 17:15:54 ET

Update 5:15pm : LL Flooring confirms takeover offer.

LL Flooring Holdings ( NYSE: LL ) soared 16% in after hours trading after the company's original founder said he made an offer for the flooring chain after attempting to buy the company in 2019.

Tom Sullivan said his group is "prepared to consider an offer" of $5.76 a share for LL Holdings ( LL ), according to a May 26 letter he sent, which is attached to a 13D filing disclosed on Tuesday. The price would represent a 39% premium to LL's closing price on Tuesday.

"We are prepared to move quickly toward a transaction," Sullivan wrote in the letter. "To that end, we propose meeting soon to discuss our proposal and to take steps to initiate due diligence, subject, of course, to an appropriate confidentiality agreement, with applicable standstill provisions."

Sullivan is trying to combine LL Holdings ( LL ), originally known as Lumber Liquidators, with Cabinets to Go, another home-improvement retailer he founded. LL shares jumped 11% on Thursday 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 on Tuesday. LL's board will carefully review the offer.

LL Holdings ( LL ) short interest is 8.8%.

More on LL Flooring:

• LL Flooring stock slides on wider than expected loss
• LL Flooring: Challenges Continue In 20 23
• LL is at high risk of performing badly

For further details see: