As many of you probably already know, last year Walgreens bought out rite aid. We have been waiting to hear what this means for us as shoppers. Is Walgreens going to take over Rite aid? Is rite Aid going to shut its doors? Stockholders have finally agreed on the merger details. Rite Aid has released this information:
Rite Aid Corporation (NYSE: RAD) (“Rite Aid”) announced today that its stockholders have voted to approve the adoption of the previously announced Agreement and Plan of Merger, dated as of Oct. 27, 2015 (the “Merger Agreement”), by and among Rite Aid, Walgreens Boots Alliance, Inc., a Delaware corporation (“WBA”), and Victoria Merger Sub, Inc., a Delaware corporation and a wholly owned direct subsidiary of WBA (“Victoria Merger Sub”), providing for the merger of Victoria Merger Sub with and into Rite Aid (the “Merger”), with Rite Aid surviving the Merger as a wholly owned direct subsidiary of WBA, at a special meeting of stockholders held today.
Approximately 97% of the votes cast at today’s special meeting of stockholders voted in favor of the adoption of the Merger Agreement, which represented approximately 72% of Rite Aid’s total outstanding shares of common stock as of the Dec. 18, 2015 record date and constitutes a majority of the outstanding shares of Rite Aid common stock entitled to vote at the special meeting, as required to adopt the Merger Agreement under the General Corporation Law of the State of Delaware. A quorum of 74% of Rite Aid’s total outstanding shares of common stock as of the Dec. 18, 2015 record date voted at the special meeting.
In a separate item, 89% of votes cast by Rite Aid stockholders at the special meeting approved, by means of a non-binding, advisory vote, compensation that will or may become payable by Rite Aid to its named executive officers in connection with the Merger.
Upon completion of the Merger, Rite Aid’s stockholders will be entitled to receive $9.00 in cash for each share of Rite Aid’s common stock that such stockholder owns. The Merger, which is expected to be completed in the second half of calendar 2016, is subject to the satisfaction of certain remaining customary closing conditions as set forth in the Merger Agreement and discussed in detail in the definitive proxy statement filed with the U.S. Securities and Exchange Commission by Rite Aid on Dec. 21, 2015.
So, what does that mean about the two stores? We still have no idea! They are going to keep us in suspense for a bit longer but I will let you know as soon as I hear anything.