Meriden-based Vestis Retail Group could reduce its $14.9 million offer for California-based sporting goods retailer Sport Chalet if stockholders don’t offer up an additional 85,000 shares by Friday, Sport Chalet warned Tuesday evening.
Vestis has offered $1.20 a share for the retailer, which has 51 stores, but that offer will automatically be reduced to $1.04 if Sport Chalet stockholders fail to tender at least 90 percent of outstanding shares by midnight Friday.
If too few shares are tenderd, Vestis and Sport Chalet will hold a special shareholder meeting, where they expect a “second-step merger” to be approved, because they will have enough shares to pass it. Under that scenario, those who did not tender shares will be bought out for $1.04 regardless.
