Activist shareholders are stepping up pressure on Darden Restaurants, owner of the Red Lobster and Olive Garden chains, pushing for a broader breakup of the restaurant conglomerate. On December 19, 2013, Darden Restaurants (NYSE: DRI-$51.19, Market Capitalization: $6.7 billion), a full-service restaurant company, announced a plan to spin-off its Red Lobster, a casual dining brand, specialized in full service seafood dining, with operation in U.S. and Canada. The proposed spin-off is expected to be structured as a tax-free distribution of shares of Red Lobster to all shareholders of Darden on a pro-rata basis. Post-separation, DRI expects to use the proceeds from the new debt raised by Red Lobster to retire a portion of DRI’s existing debt. The spin-off is expected to be completed in the first quarter of 2015.
Reported by Forbes.com 1 day ago.
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