Best Buy founder Richard Schulze has announced that they have worked with the company to go private through an acquisition. Best Buy said that Schulze will get access to confidential financial statements and allow him to form an investment group with private equity sponsors to make a bid for the company.
Schulze owns 20% of the company’s stock. Best Buy said that the agreement establishes a non-exclusive orderly process for a bid while protecting the interests of the shareholders. Schulze said that an agreement was reached ?which will allow him to conduct the due diligence he had sought.? Schulze and his partners will have 60 days to present a fully financial proposal.
If Best Buy decides to reject Schulze’s proposal, Best Buy’s board will have 30 days to review the second proposal before Schulze can take the offer directly to shareholders at the company’s annual meeting. If the second offer is turned down by the board and shareholders, he would need to wait one year before making another proposal.