Albertsons Companies Issues Statement Regarding the Denial of a Request for Preliminary Injunction by the Attorney General of the State of Washington and Extension of the Temporary Restraining Order on its Special Dividend Payment

Rhea-AI Summary

Albertsons Companies (NYSE: ACI) announced that the Washington State Court denied the Attorney General's request for a preliminary injunction against a $6.85 per share Special Dividend, originally set for November 7, 2022. Shareholders of record by October 24, 2022 are eligible. The court also extended a temporary restraining order until December 19, 2022 for potential appeals. Albertsons believes the lawsuits from multiple states against the dividend are meritless. The company’s merger with Kroger is under regulatory review.

Positive

• Court's denial allows the planned Special Dividend payment of $6.85 per share to proceed, which was approved by the Board.
• Albertsons maintains confidence in its legal position against state lawsuits, potentially indicating robust corporate governance.

Negative

• Ongoing legal challenges from multiple states could create uncertainty and operational distraction.
• The merger with Kroger faces regulatory scrutiny, which may delay or hinder the completion of the deal.

BOISE, Idaho--(BUSINESS WIRE)-- Albertsons Companies (NYSE: ACI) (“Albertsons Cos.” or “the Company”) today announced that the Washington State Court has denied the request for a preliminary injunction by the Attorney General of the State of Washington against the previously announced $6.85 per common share Special Dividend (the “Special Dividend”) originally scheduled to be paid on November 7, 2022, to stockholders of record as of the close of business on October 24, 2022. The Washington State Court has extended the existing temporary restraining order (“TRO”) until 4:30 p.m. PST on December 19, 2022, to give the Attorney General of the State of Washington an opportunity to appeal today’s ruling.

Albertsons Cos. awaits a ruling on the request for a preliminary injunction filed December 1, 2022, by the California, Illinois and District of Columbia Attorneys General against the payment of the Special Dividend. On November 8, 2022, the U.S. District Court for the District of Columbia denied their request for a temporary restraining order against the payment of the Special Dividend.

Albertsons Cos. continues to believe that the claim brought by the Attorney General of the State of Washington, and the similar lawsuit brought by the Attorneys General of California, Illinois, and the District of Columbia, is meritless and provides no legal basis for preventing the payment of a dividend that has been duly and unanimously approved by Albertsons Cos.’ fully informed Board of Directors.

Albertsons Cos.’ proposed merger with The Kroger Co. is continuing through required regulatory review, including seeking clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221209005622/en/

For Investor Relations, contact investor-relations@albertsons.com

For Media Relations, contact media@albertsons.com

Source: Albertsons Companies, Inc.

FAQ

What is the Special Dividend amount for Albertsons Companies (ACI)?

The Special Dividend amount is $6.85 per common share.

What is the payment date for Albertsons' Special Dividend?

The Special Dividend is scheduled to be paid on November 7, 2022.

Who is affected by the Special Dividend?

Stockholders of record as of the close of business on October 24, 2022, are eligible to receive the Special Dividend.

What legal challenges is Albertsons facing regarding the Special Dividend?

Albertsons is facing lawsuits from the Attorneys General of Washington, California, Illinois, and the District of Columbia.

Is the merger with Kroger still happening?

Yes, the merger is proceeding through regulatory review.