The purchase price represents a premium of 22% over the stock’s closing price on Dec. 19, 2018, the day prior to the company’s announcement that it was seeking strategic alternatives.
The stock was temporarily halted for trading, but the stock was back trading up 17.24% Monday.
“Over the course of our review, the Committee evaluated a full range of strategic, financial and capital structure alternatives to best serve the interests of our stockholders. After a thorough process, including considering Del Frisco’s current operations and future prospects, the Committee and the Board is confident that this transaction offers the most promising opportunity to realize the highest value for our stockholders,” said Joe Reece, committee chairman of Del Frisco’s.
Del Frisco’s operates the Double Eagle Steakhouse, Barcelona Wine Bar, bartaco, and Del Frisco’s Grille brands. As of March 12, it operated 75 restaurants in 16 states and the District of Columbia.
Last month, the company announced plans to lay off up to 15% of its general and administrative workforce. The move was expected to reduce 2019 administrative costs by $3 million.
Del Frisco's Restaurant Group, Inc. (DFRG - Get Rating) shares were trading at $7.86 per share on Monday morning, up $1.13 (+16.79%). Year-to-date, Del Frisco's Restaurant Group, Inc. (DFRG - Get Rating) has gained 9.93%, versus a 18.32% rise in the benchmark S&P 500 index during the same period.
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