To make the best use of prevailing market conditions and get benefitted by Fidelity National Financial’s expertise in the field, O’Charley’s LLC (NASDAQ:CHUX) decided to execute a merger transaction.
Insights of This Merger
O’Charley’s signed a definitive agreement with Fidelity National Financial, Inc. (NYSE:FNF) to acquire all of its outstanding shares at an unbelievable price of $9.85 per share. As per the reports, the total deal value was about $221 million on a diluted basis. The price that O’Charley’s offered made the 42% of company’s stock price $6.92 at the end of the previous day, and 57% of its 20-day average price of $6.27.
Board of Directors of O’Charley’s and Fidelity National Financial Subsidiary approved the transaction without any further delay.
Senior management teams of both the companies were delighted to execute this transaction and hoped that it would open new ways for further growth. According to David W. Head, CEO & President, O’Charley’s, this merger will result in a number of benefits for the company and its shareholders, including high value for shares. FNF is known for its expertise in long-term growth, which will help O’Charley’s achieve its objectives and live up to the expectations of stakeholders, partners and other key resources.
According to William P. Foley II, Chairman, FNF, it’s a great step that will give an edge to both the companies over their rivals. After making an investment in American Blue Ribbons Holdings LLC, FNF was in need of a scalable, large investment. Thanks to O’Charley’s that it has got exactly what it wanted in the best possible way.
With three established restaurant brands – O’Charley’s, Stoney River and Ninety Nine, and over 340 restaurant properties generating over $800 million revenues, O’Charley’s LLC is the best company to get associated with.
Both FNF and O’Charley’s look forward to using their business expertise and monetize the prevailing market opportunities with each other’s help to generate extra growth opportunities in the long run.
