Luby’s (NYSE:LUB) news for Tuesday includes plans to liquidate the restaurant company pushing LUB stock higher.
According to a Luby’s news release, the company is planning to sell of its businesses, operations, and real estate. It will also be shutting down any remaining operations as it moves forward with this plan.
Luby’s notes in the news release that it’s Board of Directors has already given its approval to the liquidation plan. That means the company is now seeking approval from shareholders to move forward with the liquidation. It will hold a special meeting of shareholders looking for this approval.
Luby’s says that it expects the liquidation to generate between approximately $92 million and $123 million. The company intends to distribute these funds to LUB shareholders. Its current estimate is that this will have it sending shareholders between $3 and $4 per share in cash. For comparison, the stock was trading at $1.05 per share when markets closed on Friday.
Christopher Pappas, president and CEO of Luby’s, said the following in the news release.
“We believe that moving forward with a Plan of Liquidation will maximize value for our stockholders, while also preserving the flexibility to pursue a sale of the Company should a compelling offer that delivers superior value be made. The Plan also continues to provide for the potential to place the restaurant operations with well-capitalized owners moving forward.”
LUB stock was up 111.8% as of Tuesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.