HOUSTON Landry's Restaurants Inc. said Tuesday it had agreed to a $1.2 billion buyout offer from founder Tilman J. Fertitta, who has been trying to take the company private for more than a year.
Fertitta, who is chairman, chief executive and president of Landry's and holds more than 55 percent of its stock, offered $14.75 in cash for each share he doesn't already own. The offer represents a 37-percent premium over Landry's closing share price of $10.76 on Monday.
On news of the buyout, Landry's stock rose 27.2 percent on Tuesday to close at $13.69, after hitting a new 52-week high of $13.99 during trading. The lowest stock price during the past year was $3.60 per share.
Holders of a majority of stock not owned by Fertitta must approve the deal, Landry's said. The agreement also includes a “go-shop” provision for the board to seek other acquisition proposals until Dec. 17 or when the company's debt financing is complete. If approved, the deal is expected to close in the first half of 2010.
Fertitta has been trying since last summer to take Landry's private. A deal initially proposed in June 2008 fell through early this year when the Securities and Exchange Commission required financing information from lenders, which the company considered confidential.
In September, Fertitta made another offer that involved a spinoff of Landry's Saltgrass Inc. steakhouse subsidiary, with shareholders receiving shares in that new public company. However, Landry’s board rejected that plan.
Landry’s owns such casual-dining restaurants as Rainforest Cafe, Saltgrass Steak House, Landry's Seafood House, Charley's Crab, The Chart House as well as upper-end restaurants. The company also has gaming-hotel properties with the Golden Nugget Hotel & Casino in Las Vegas and Laughlin, Nev.
Contact Ron Ruggless at [email protected].