Tuesday, December 22, 2015

Plans in place again for Albertsons IPO

Albertsons (Acme, Albertsons, Safeway, Vons, Jewel-Osco et al) filed an amended stock prospectus for an initial public offering late last month in hopes of raising between $1.5 and $2 billion. The company had originally planned to hold the offering in October but called off the IPO due to market volatility.

The prospectus is seeking a sale of 65.3 million shares at a price between $23 and $26 per share, along with an over-allotment of 9.8 million shares. Albertsons says it plans to use the proceeds to pay down debt.

Albertsons is owned by a consortium led by Cerberus Capital Management, and includes real estate companies Kimco Realty, Klaff Realty, Lubert-Adler and Schottenstein Stores. This consortium will indirectly own approximately 83% of Albertsons common stock following the offering.

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