Albertsons moving forward with IPO plans
Albertsons moving forward with IPO plans
Albertsons is moving forward with its plans for an initial public offering of shares of its common stock in late September or early October, according to a Reuters report, which said people familiar with the matter suggested the value could be as high as $24 billion, including debt.
The company initially filed a registration statement with the Securities & Exchange Commission for the IPO on July 8, and at the time Albertsons said it planned to raise $100 million in the offering. The Reuters report said market conditions could affect the listing date.
Earlier this year Albertsons completed its merger with Safeway, creating a diversified network that includes 2,230 stores, 27 distribution facilities and 19 manufacturing plants with over 250,000 employees across 34 states and the District of Columbia. As a condition of that merger, the Federal Trade Commission ordered Albertsons and Safeway to sell off some of their stores. Haggen, a West Coast regional grocer that purchased 146 of the Albertsons and Safeway stores, is now suing Albertsons for $1 billion in damages.
On Sept. 1 Haggen filed its lawsuit against Albertsons, saying the company engaged in “coordinated and systematic efforts to eliminate competition and Haggen as a viable competitor in over 130 local grocery markets in five states,” and “made false representations to both Haggen and the FTC about Albertsons’ commitment to a seamless transformation of the stores into viable competitors under the Haggen banner.” Albertsons has denied the alegation.
