In an announcement today, True Religion Apparel, Inc disclosed that it has entered into a merger agreement with TowerBrook Capital Partners LP for US$835 million. In the provisions of the merger agreement, it stated that TowerBrook will buy all the existing shares of True Religion common stock at US$32.00 per share in cash. This shows annuity of fifty two percent to the share value of True Religion on the 9th of October 2012 which is a day prior to the announcement of the company that it had started to look at other revenue options.
The merger was collectively accepted by the Board of Directors who then suggested to the shareholders of True Religion to vote for in accordance with the deal.
According to Seth Johnson True Religion Lead Director, "After a thorough review of strategic alternatives to enhance shareholder value, we are pleased to reach this agreement, which provides our shareholders with immediate and substantial cash value representing a significant premium. The Special Committee has engaged in a thorough review of the state of the business, its outlook and opportunities. Having considered alternatives over a seven month period, the Special Committee believes TowerBrook's $32.00 per share cash offer for the Company is in the best interest of our shareholders."
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