Nicholas Financial Gets Buyout Offer

Interesting news from Nicholas Financial ($NICK). The company got a buyout offer. I don’t know the details but NICK has retained Janney Montgomery Scott to help them look at the deal and other possible alternatives.

Long-time NICKers will remember that NICK got a similar offer two years ago but the price was too low. I was very happy NICK shot down that offer. The stock was at $10.08 when that offer was made (pre-dividend) so we were right, NICK would probably have sold itself too soon. Now I’d be more interested in a good price. Also, NICK’s senior management is at the age when most folks think it’s time to retire.

When NICK got the offer in January 2011, the shares jumped 18% the next day. In the current after-hours market, NICK is up to $14.50 which is a 9.5% gain.

Here’s the press release:

CLEARWATER, Fla., March 20, 2013 (GLOBE NEWSWIRE) — Nicholas Financial, Inc. (NICK) announced today that the Board of Directors of the Company has retained Janney Montgomery Scott LLC as its independent financial advisor to assist the Board of Directors in evaluating possible strategic alternatives for the Company, including, but not limited to, the possible sale of the Company or certain of its assets, potential acquisition and expansion opportunities, and/or a possible debt or equity financing.

The Company also announced today that it has received an unsolicited, non-binding indication of interest from a potential third-party acquirer. The Company cautions its shareholders and others considering trading in its securities that its Board of Directors only recently received the indication of interest, and that the process of considering this proposal as well as other possible strategic alternatives for the Company is only in its beginning stages. The Board of Directors will proceed in an orderly and timely manner to consider possible strategic alternatives for the Company and their implications. Accordingly, no assurances can be given as to whether any particular strategic alternative for the Company will be recommended or undertaken or, if so, upon what terms and conditions. The Company currently does not intend to make any further public announcements regarding its Board of Directors’ review of possible strategic alternatives until this evaluation process has been completed.

Posted by on March 20th, 2013 at 5:20 pm


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