Benihana Inc. to Explore Strategic Alternatives
July 13 2010 - 4:05PM
Business Wire
Benihana Inc. (NASDAQ: BNHNA; BNHN), operator of the nation’s
largest chain of Japanese theme and sushi restaurants, today
announced that its Board of Directors has decided to explore
strategic alternatives available to the Company, including a
possible sale, in order to maximize shareholder value.
Richard C. Stockinger, Chief Executive Officer, said “While the
Company strongly believes in the renewal program and that
significant progress has been made toward achieving its goals, the
Company has also stated its intention to commence an expansion plan
through restaurant development and/or acquisitions. However, growth
would be predicated on raising additional capital, and the Company
is reluctant to issue new equity at current price levels.
Furthermore, several large shareholders have expressed disagreement
with the Board and have indicated a desire to seek Board membership
to pursue a change in the Company’s strategic direction.”
Mr. Stockinger concluded, “The combination of issues relating to
raising new capital and the divergent views of these shareholders
have made it extremely difficult for the Company to implement with
confidence a growth plan that would include organic growth as well
as acquisitions at this time. As a result, the Board has determined
that the best course of action is to engage in a formal review of
strategic alternatives available to the Company with the assistance
of a qualified financial advisor, including a possible sale. The
objective would be to enhance shareholder value, while also
maintaining and furthering the strategies the Company has
initiated.”
The Company does not intend to disclose developments with
respect to the progress of its strategic review until such time as
the Board has approved a transaction or otherwise deems disclosure
appropriate.
The Company also announced that its Annual Meeting of
Shareholders will be held on September 14, 2010. The record date
for the Annual Meeting of Shareholders will be August 10, 2010.
About Benihana
Benihana Inc. (NASDAQ: BNHNA; BNHN) operates 97 restaurants
nationwide, including 63 Benihana teppanyaki restaurants, nine Haru
sushi restaurants, and 25 RA Sushi Bar restaurants. Under
development at present is one Benihana teppanyaki restaurant. In
addition, 21 franchised Benihana teppanyaki restaurants are
operating in the U.S., Latin America and the Caribbean.
To learn more about the Company and its three Japanese theme and
sushi restaurant concepts, please view the corporate video at
www.benihana.com/about/video
Matters discussed in this press release contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 that
involve substantial risks and uncertainties. Actual events and
results could differ materially from those contained in the
forward-looking statements. The Company cautions that there is no
assurance regarding the timing or whether the Company will elect to
pursue any of the strategic alternatives it may consider, or that
any such alternatives will result in changes to the Company’s
business plan or a sale of the Company. The forward-looking
statements are also subject to a number of other risks and
uncertainties, including, without limitation, the risk that the
renewal program may not be successful, that the Company may issue
equity securities at prices dilutive to its existing shareholders
and that any strategic alternative pursued may not be successful.
In addition to the risks and uncertainties identified above,
reference is also made to other risks and uncertainties detailed in
reports filed by the Company with the Securities and Exchange
Commission.
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