Rite Aid has sent a letter to shareholders urging their support for the pending Albertsons merger at the company’s upcoming special meeting.
The letter included answering frequently asked questions about the proposed merger with Albertsons and outlined key reasons for shareholders supporting the combination. Rite Aid is recommending that shareholders vote for the merger.
The letter reads, in part:
“Dear Rite Aid Shareholder: As the August 9, 2018 Special Meeting to approve the proposed merger with Albertsons approaches, we have been in regular discussions with our shareholders regarding the benefits of the transaction. As we have engaged in these discussions, a number of important questions have arisen. For the benefit of all our shareholders, we have collected some of the most frequently asked questions and provided responses below. We hope these responses provide clarity as you consider your support for the transaction.
Rite Aid’s board and management team are committed to this transaction and believe it is the best option for Rite Aid shareholders. We recommend shareholders vote for the merger and position Rite Aid to capture compelling, long-term value for shareholders and customers that we believe the merger creates.”
In answering queries, including one that address why Albertsons is the right partner for Rite Aid, the drug chain operator stated that the merger with Albertsons would accelerate Rite Aid’s strategic and financial transformation, significantly enhance scale and diversification, and improve growth prospects, financial strength and ability to deliver compelling long-term value in the face of the rapidly evolving retail health care landscape.
Rite aid asserted that the decision to merge with Albertsons followed a series of discussions that Rite Aid’s board and management team have engaged in over the past several years, including talks with an extensive list of third parties, around a range of strategic options for Rite Aid. Options discussed included a potential sale of EnvisionRxOptions, Rite Aid’s pharmacy benefit manager, and remaining a stand-alone company. After review by the full board, Rite Aid stated, a transaction with Albertsons emerged as the option delivering superior value and greater certainty versus other alternatives.
The company further detailed its reasons for the merger in the letter, pointing out that its shareholders would own 30% of Albertsons after the transaction.