Dakota Growers Pasta begins tender offer
March 26, 2007
by FoodBusinessNews.net Staff
CARRINGTON, N.D. — Dakota Growers Pasta Co. moved forward with a tender offer of up to 3,920,000 shares of common stock at $10 per share. This is equal to about 29.8% of the company’s 13,169,382 shares currently outstanding.
The offer ends on April 24, and shareholders may tender as many shares as they would like. However, Dakota Growers said it is not obligated to buy more than 3,920,000 shares of common stock.
Dakota Growers Pasta is going through with the tender offer as a way of providing liquidity to shareholders. Additionally, the offer is a part of an investment made by MVC Capital Inc. and La Bella Holdings LLC. With the agreement, Dakota Growers is issuing up to 1 million shares of Series F nonvoting convertible preferred stock to MVC and up to 1 million shares of common stock to La Bella Holdings at the price of $10 per share.