Albertsons Companies Issues Statement Regarding Washington Supreme Court’s Decision to Extend the Temporary Restraining Order Against its Previously Announced Special Dividend Payment

Rhea-AI Summary

Albertsons Companies, Inc. (NYSE: ACI) announced that the State of Washington Supreme Court has extended a temporary restraining order against its $6.85 per share Special Dividend as the court reviews an appeal. The order will stay in effect until further notice. Albertsons has filed a motion to expedite this review and maintains that the claims by the Washington Attorney General and similar lawsuits from California, Illinois, and Washington, D.C. lack legal standing. The company’s merger with The Kroger Co. continues through regulatory scrutiny.

Positive

• None.

Negative

• Ongoing legal constraints could delay the $6.85 Special Dividend payment, impacting shareholder returns.
• Regulatory review process for merger with Kroger may introduce uncertainties and delays.

BOISE, Idaho--(BUSINESS WIRE)-- Albertsons Companies, Inc. (NYSE: ACI) (“Albertsons Cos.” or “the Company”) today announced that the State of Washington Supreme Court has continued the temporary restraining order (“TRO”) against the Company’s previously announced $6.85 per common share Special Dividend (the “Special Dividend”) while the Washington Supreme Court considers if it will hear the state’s appeal. The TRO will remain in effect until there is a further order issued by the Court.

Albertsons Cos. has filed a motion to expedite the Washington Supreme Court’s review.

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, are meritless and provide 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/20221216005540/en/

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

For Media Relations, contact media@albertsons.com

Source: Albertsons Companies, Inc.

FAQ

What is the current status of the $6.85 Special Dividend for ACI?

The payment of the $6.85 Special Dividend is currently on hold due to a temporary restraining order from the Washington Supreme Court.

When can shareholders expect the $6.85 Special Dividend to be paid?

The timing of the payment remains uncertain pending the court's decision on the appeal regarding the temporary restraining order.

What are the implications of the legal actions on ACI's stock performance?

The ongoing legal challenges may create volatility in ACI's stock performance as investors await clarity on the Special Dividend and the merger with Kroger.

How might the merger with Kroger affect ACI's dividend policy?

Regulatory scrutiny of the Kroger merger may influence Albertsons’ financial strategy, including its approach to dividends.