Target Corporation (NYSE:TGT), the second largest discount retailer in the United States announced its decision to close eleven stores as of February 1, 2015.
Target evaluated each store’s long-term financial performance
According to the company, a careful evaluation on the long-term term financial performance of a particular store was conducted prior to its decision to close the stores.
Target Corporation (NYSE:TGT) said all of its eligible store team members have the option to transfer to its other locations. Those who choose not to transfer to other Target stores will receive a separation package.
The Target stores that will be closed next year are located in Lithonia, Georgia; Castleton, Indiana; Clinton, Iowa; Wichita East, Kansas; Monroe, Northland and Baty ,Michigan; McHenry and Calumet City, Illinois; Baty Michiga; Austin, Minnesota, and Carrolton, Texas.
Target Corporation receives mini-tender offer from TRC Capital
Separately, Target Corporation (NYE:TGT) disclosed that TRC Capital submitted an unsolicited mini-tender offer to acquire as much as 2 million shares of the company for $59 per share in cash without interest. The offer accounts 0.32% of the outstanding shares of the retailer.
Target Corporation (NYSE:TGT) emphasized that the proposed purchase price was approximately 4.5% lower than the closing price of its stock on October 30, the last day of trading before TRC Capital made its mini-tender offer.
The shares of Target Corporation (NYSE:TGT) closed at $61.29 per share on Tuesday.
The management of Target Corporation (NYSE:TGT) is not recommending TRC Capital’s mini-tender offer and urged its shareholders to reject it citing the reason that the offer price is below the market price of its stock and subject to numerous conditions.
In addition, Target Corporation (NYSE:TGT) is encouraging any shareholder who have tendered shares to TRC Capital to withdraw their shares by providing the written notice described in the offering documentation before the expiration of the offer on December 2 at 12:01 A.M. Eastern Time.
“TRC Capital has made similar unsolicited mini-tender offers for shares of other public companies. Mini-tender offers are designed to seek less than five percent of a company’s outstanding shares, thereby avoiding many investor protections, including the disclosure and procedural requirements applicable to most bids under United States securities laws,” according to Target Corporation (NYSE:TGT).
In addition, the company noted that the SEC cautioned investors regarding mini-tender offers. The commission stated that “some bidders make mini-tender offers at below-market prices, hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price.”