Albertsons Cos. Issues Statement Regarding U.S. District Court for District of Columbia’s Ruling to Deny Request by California, Illinois and District of Columbia Attorneys General for Temporary Restraining Order Against its Special Dividend Payment
09 November 2022 - 1:59AM
Business Wire
Albertsons Companies (NYSE: ACI) (“Albertsons Cos.” or “the
Company”) today announced that the U.S. District Court for the
District of Columbia has denied the request by the California,
Illinois and District of Columbia Attorneys General for a temporary
restraining order (“TRO”) against the Company’s previously
announced $6.85 per common share Special Dividend (the “Special
Dividend”), originally scheduled to be paid on November 7,
2022.
Albertsons Cos. continues to seek to overturn the existing
temporary restraining order granted by the Washington State Court
on November 3, which was based on the incorrect assertion that
payment of the Special Dividend would impair the Company’s ability
to compete while its proposed merger (the “Merger”) with The Kroger
Co. (“Kroger”) is under antitrust review. This order, which
restrains the Company from paying the Special Dividend, remains in
effect until November 10, 2022, unless within that time, an order
is entered extending or dismissing the temporary restraining
order.
Albertsons Cos. continues to maintain that the lawsuit brought
by the State of Washington is meritless and provides no legal basis
for canceling or postponing a dividend that has been duly and
unanimously approved by Albertsons Cos.’ fully informed Board of
Directors. After payment of the Special Dividend, Albertsons Cos.
will have approximately $3.0 billion of liquidity, including
approximately $500 million in cash and approximately $2.5 billion
available under its already existing asset-based lending facility,
and expects to continue to generate strong revenues and positive
free cash flow, further increasing liquidity. Albertsons Cos. is
confident that it will continue to make strategic progress
following the payment of the Special Dividend, given its strong
cash flows and low debt profile.
The Company remains fully committed to investing in the
associates, stores, and digital capabilities that have made its
recent growth and strong performance possible.
Forward-Looking
Statements
This press release includes “forward-looking statements” within
the meaning of the federal securities laws. The “forward-looking
statements” include our current expectations, assumptions,
estimates and projections about the Special Dividend and the
payment thereof. They include statements which the Company believes
to be reasonable at this time. You can identify forward-looking
statements by the use of words such as “outlook,” “may,” “should,”
“could,” “estimates,” “predicts,” “potential,” “continue,”
“anticipates,” “believes,” “plans,” “expects,” “future” and
“intends” and similar expressions which are intended to identify
forward-looking statements.
These statements are not guarantees of future performance and
are subject to numerous risks and uncertainties which are beyond
our control and difficult to predict and could cause actual results
to differ materially from the results expressed or implied by the
statements.
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
these cautionary statements and risk factors. Forward-looking
statements contained in this press release reflect our view only as
of the date of this press release. We undertake no obligation,
other than as required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
In evaluating our forward-looking statements, you should
carefully consider the risks and uncertainties more fully described
in the “Risk Factors” section or other sections in our reports
filed with the SEC.
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For Investor Relations, contact
investor-relations@albertsons.com For Media Relations,
contact media@albertsons.com
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