Pre-Paid Legal Announces Evaluation of Strategic Alternatives to Enhance Shareholder Value
October 25 2010 - 8:31AM
PR Newswire (Canada)
ADA, Okla., Oct. 25 /CNW/ -- Pre-Paid Legal Services, Inc. (NYSE:
PPD) announced today that it is evaluating strategic alternatives,
including a possible sale of the Company and alternatives that do
not involve a sale, to enhance shareholder value. The Board of
Directors has established a special committee comprised of
independent directors to lead the process. As part of the process,
the special committee has been evaluating an offer received by the
Company from a well-known private equity firm to acquire all of the
outstanding shares of the Company's common stock in a merger at a
price of $60.00 cash per share. Among other terms, the proposal
allows for the offeror to pay a to-be-determined amount to the
Company as the offeror's sole recourse in the event that it is not
able to obtain financing to complete the transaction. Counsel for
the offeror has notified the Company that in the event of a public
disclosure by the Company or its advisors of the offeror's
proposal, the proposal will be deemed withdrawn. The special
committee has not set a definitive timetable for completion of its
evaluation of strategic alternatives and there can be no assurances
that the process will result in any transaction being announced or
completed. The Company does not intend to disclose any developments
regarding the process unless and until the special committee has
approved a specific course of action. The special committee has
retained Berenson & Company, LLC to act as its financial
advisor and Mayer Brown LLP to act as its legal advisor. About Us -
We believe our products are one of a kind, life events legal
service plans. Our plans provide for legal service benefits
provided through a network of independent law firms across the U.S.
and Canada, and include unlimited attorney consultation, will
preparation, traffic violation defense, automobile-related criminal
charges defense, letter writing, document preparation and review
and a general trial defense benefit. We have an identity theft
restoration product we think is also one of a kind due to the
combination of our identity theft restoration partner and our
provider law firms. More information about our products and us can
be found at our homepage at www.prepaidlegal.com. Forward-Looking
Statements Statements in this press release, other than purely
historical information, regarding our future plans and objectives
and expected operating results, dividends and share repurchases and
statements of the assumptions underlying such statements,
constitute forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934. The forward-looking
statements contained herein are based on certain assumptions that
may not be correct. They are subject to risks and uncertainties
incident to our business that could cause actual results to differ
materially from those described in the forward-looking statements.
These risks and uncertainties are described in the reports and
statements filed by us with the Securities and Exchange Commission,
including (among others) those listed in our Form 10-K, Form 10-Q
and Form 8-K, and include the risks that our membership persistency
or renewal rates may decline, that we may not be able to continue
to grow our memberships and earnings, that we are dependent on the
continued active participation of our founder and Chairman, that
pending or future litigation may have a material adverse effect on
us if resolved unfavorably to us, that we may have compromises of
our information security, that during an economic downturn in the
economy consumer purchases of discretionary items may be affected
which could materially harm our sales, retention rates,
profitability and financial condition, that we could be adversely
affected by regulatory developments, that competition could
adversely affect us, that we are substantially dependent on our
marketing force, that our stock price may be affected by short
sellers, that we have been unable to increase our employee group
membership sales, that our active premium in force is not
indicative of future revenue as a result of changes in active
memberships from cancellations and additional membership sales and
that we have repurchased more than half our outstanding shares over
the past years. Please refer to pages 16 - 19 of our 2009 Form 10-K
and pages 7 and 8 of our June 30, 2010 Form 10-Q for a more
complete description of these risks. We undertake no duty to update
any of the forward-looking statements in this release. Randy Harp
of Pre-Paid Legal Services, Inc., +1-580-436-1234 Web Site:
http://www.prepaidlegal.com
Copyright
Pre Paid Legal (NYSE:PPD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Pre Paid Legal (NYSE:PPD)
Historical Stock Chart
From Jul 2023 to Jul 2024