Albertsons Companies Provides Updates on Legal Proceedings Surrounding Special Dividend

Rhea-AI Summary

Albertsons Companies, Inc. (NYSE: ACI) announced a $6.85 Special Dividend, pending a review by the Washington State Supreme Court on February 9, 2023. A temporary restraining order currently halts payment until further notice. Additionally, the U.S. Circuit Court denied a motion from various Attorneys General seeking to block the dividend. The Company believes these legal claims are baseless. Furthermore, the merger with The Kroger Co. is moving forward through regulatory review.

Positive

• Approval of a Special Dividend of $6.85 per share.
• Legal rulings favoring the Company regarding the Special Dividend.
• Continuation of the merger process with The Kroger Co.

Negative

• None.

Washington State Supreme Court Set to Hear Appeal on February 9, 2023

U.S. Circuit Court for the District of Columbia Denies Motion by Attorneys General for an Injunction Pending Appeal

BOISE, Idaho--(BUSINESS WIRE)-- Albertsons Companies, Inc. (NYSE: ACI) (“Albertsons Cos.” or “the Company”) announced that on December 19, 2022, the State of Washington Supreme Court set a date for the review of the temporary restraining order (“TRO”) against the Company’s previously announced $6.85 per common share Special Dividend (the “Special Dividend”). The Washington Supreme Court, sitting en banc, will review the appeal of the Attorney General of the State of Washington on February 9, 2023. The TRO will remain in effect until there is a further order issued by the Washington Supreme Court. Albertsons Cos. has filed a motion to further expedite the Washington Supreme Court’s en banc review.

The Company further announced that on December 20, 2022, the U.S. Circuit Court for the District of Columbia denied the motion filed by the California, Illinois and District of Columbia Attorneys General for an injunction pending appeal and an administrative stay of the payment of the Special Dividend. On November 8, 2022, the U.S. District Court for the District of Columbia denied the request by the California, Illinois and District of Columbia Attorneys General for a temporary restraining order against the payment of the Special Dividend.

Albertsons Cos. continues to maintain 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 the Special Dividend. Albertsons’ position has been supported by favorable rulings in both Circuit and District courts in the District of Columbia and a Washington State court.

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/20221221005547/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 ACI?

The Special Dividend amount for Albertsons Companies, Inc. (ACI) is $6.85 per share.

When will the Washington Supreme Court hear the appeal regarding the Special Dividend?

The Washington Supreme Court is set to hear the appeal on February 9, 2023.

What is the status of the merger between Albertsons and Kroger?

The merger between Albertsons and The Kroger Co. is in progress through regulatory review.

Have any courts ruled against the payment of the Special Dividend?

No, both the U.S. Circuit Court and the U.S. District Court have denied motions to block the Special Dividend.

What legal challenges is ACI facing regarding the Special Dividend?

ACI is facing legal challenges from the Attorney General of Washington and other states, which the Company believes are meritless.