Gander Mountain plans to go private
Gander Mountain (Nasdaq: GMTN) said it plans to become a private company, saying its directors decided it would be a disadvantage to remain publicly traded on the Nasdaq Global Market. The decision is partly due to the costs associated with regulatory requirements.
Gander Mountain said that its two largest shareholders -- Gratco LLC and Holiday Stationstores Inc. -- will pay smaller holders of less than 30,000 shares about $5.15 per share, a 35 percent premium to Sept. 25's close of $3.82. Owners of more than 30,000 shares will retain their shares and not be paid for them. The going-private transaction is expected to close in early 2010.
At the time of its most recent second quarter filing, Gander Mountain said it had totally withdrawn from the boat, all-terrain-vehicle and power sports services categories, but it still reported a loss as sales fell 2 percent to $248.4 million.
Gander Mountain said once it becomes a private company, it intends to continue its efforts to improve operating performance and reduce its outstanding indebtedness.
Gander shares gained $1.28, or 33.5 percent, to close at $5.10 on Sept. 28.
--Compiled by Wendy Geister
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