LL - LL Flooring rejects takeover offer from Cabinets to Go

2023-06-26 08:08:17 ET

LL Flooring ( NYSE: LL ) said it rejected a non-binding proposal from Cabinets to Go for $5.76 per share.

LL Flooring's ( LL ) board determined that the proposal "significantly" undervalued the worth of LL Flooring, its business, and its prospects, according to a statement.

"If you were to significantly increase your $5.76 per share proposal to a level that is reflective of the value of the Company, we will consider it consistent with the Board’s fiduciary responsibilities and provide you with confidential information pursuant to a customary non-disclosure and standstill agreement," LL Floor Chair Nancy Taylor wrote in a letter on Monday to Cabinets to Go.

The LL Flooring ( LL ) rejection comes after the former founder of Lumber Liquidators, which changed its name to LL Flooring, made an offer for the flooring chain last month 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.

More on LL Flooring

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• LL Flooring Holdings: Investors Should Push For A Deal
• LL Flooring stock slides on wider than expected loss
• LL Flooring: Challenges Continue In 20 23
• LL is at high risk of performing badly

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