By Shares of LL Flooring Holdings Inc. (LL) surged 4.7% in premarket trading on Monday after the company announced that it has turned down a hostile cash buyout bid of $5.76 per share from Cabinets To Go LLC, a subsidiary of F9 Brands Inc.
The bid, which represents a 34.3% premium to Friday’s closing price of $4.29, was deemed inadequate by LL Flooring. The company confirmed it had received a buyout offer in late May but did not disclose the proposed per-share bid at that time.
In a letter to F9, LL Chairman Nancy Taylor wrote that the $5.76-per-share proposal “significantly undervalues” the worth of the company. She further stated that if F9 were to significantly increase its offer to a level that is reflective of the company’s value, LL Flooring would consider it in accordance with its fiduciary responsibilities and provide confidential information pursuant to a customary non-disclosure and standstill agreement.
LL Flooring’s stock has climbed 23.6% over the past three months through Friday, while the S&P 500 has gained 9.5%.
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