CKE Sweetens Bid for Summit Family Chain
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ANAHEIM — CKE Restaurants Inc. said it boosted the price it will pay for Summit Family Restaurants Inc. by 1.6% to $32.3 million in cash and stock. The amended agreement reflects an increase in the number of shares outstanding in Summit Family, a Salt Lake City restaurant company.
Under the amended agreement, CKE, Anaheim-based parent of the Carl’s Jr. chain, will pay $2.77 a share in cash and 0.1738 shares of CKE common stock, valued at $2.78 a share. Summit currently has 5.82 million shares outstanding, a 21% increase from the number of shares outstanding when the companies first agreed to the purchase.
Summit, operator and franchiser of JB’s, Galaxy Diner and HomeTown Buffet restaurants, said its board has approved the buyout offer.
CKE said earlier that it plans to sell Summit’s 16 HomeTown Buffet restaurants soon after the transaction is complete, and will consider selling some of the chain’s 104 JB’s Restaurants. Any proceeds from the sales would be used to expand Summit’s chain of Galaxy Diners, 1950s diner-theme restaurants.
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