RAD shareholders would get approximately $2.38 per share of RAD

Here’s the math based on the article from Businesswire - http://www.businesswire.com/news/home/20180220005785/en/

In exchange for every 10 shares of Rite Aid common stock, Rite Aid shareholders will have the right to elect to receive either (i) one share of Albertsons Companies common stock plus approximately $1.83 in cash or (ii) 1.079 shares of Albertsons Companies stock.

Let’s dissect this statement; Option 1 gives us part the figures we need - 1 share of Albertson’s + $1.83 for every 10 shares of RAD. So divide this by 10 which is a 1/10th share of Albertson’s plus $0.183.

What is a share of Albertson’s worth? Under Option 2 you get 1.079 shares of Albertsons for every 10 share of RAD. So the $1.83 is worth 0.079 shares of Albertson’s. Divide $1.83 by 0.079 and you get a valuation of $23.16 per share of Albertsons. Remember the exchange is 10 for 1, so $23.16 becomes $2.316. Add the $0.183 to that number and you get $2.499.

Ubtil deals are completed the market usually discounts the valuation about 5%, so we take $0.125 off of $2.499 and get $2.374

In 2015, Albertson’s considered an IPO at approximately $12.4 billion valuation https://www.pymnts.com/restaurant-technology/2017/albertsons-ipo-back-on-hold/ and at the time had an o/s of 409.8 million shares http://www.nasdaq.com/markets/ipos/company/albertsons-companies-inc-970028-78908. That equates to approximately $30.25 per share back then.

They pulled the IPO based on falling financials. A present valuation of $23.16 for Albertson’s represents an approximately 23% slippage in share price since 2015. As we know the grocery store landscape is shifting quickly, so a $23.16 valuation of Albertsons at present would seem realistic.

Disappointing. Not a great deal. Wish I had been up earlier to do the research and sell pre-market.

Let’s see if there is any early market surge by folks just getting the news after the opening that will pump the price. Anything you can get over $2.50 would be great, otherwise anything between $2.37 and 2.50 is fair.

In the short-term, what we get will be determined by what Albertson's is offering for RAD. But, as a private company, they do not have to disclose that. In the long-term it will be based on the price of Albertson's shares on the NYSE.

One of the aspects of this deal is that it is a r/m for Albertson's to become a public company. They have been mulling an IPO since 2015.

https://www.bloomberg.com/news/articles/2017-07-11/albertsons-is-said-to-stall-renewed-ipo-plans-amid-amazon-deal

To show that Albertson's has been serious about becoming a public company, thy have continued to file with the SEC just like a public company. Latest 10Q at https://www.sec.gov/Archives/edgar/data/1704956/000170495618000011/aclq3-17stmt.htm

The numbers needed to start to dissect the deal are probably in the 10Q. I could not find a 10K as Albertsons as Albertson's LLC just started filing again in May 2017.

No mistake. from https://www.businesswire.com/news/home/20180220005785/en/Albertsons-Companies-Rite-Aid-Merge-Create-Food

BOISE, Idaho & CAMP HILL, Pa.--(BUSINESS WIRE)--Albertsons Companies, one of the nation’s largest grocery retailers, and Rite Aid Corporation (NYSE:RAD), one of the nation’s leading drugstore chains, announced a definitive merger agreement under which privately held Albertsons Companies will merge with publicly traded Rite Aid.

Under the terms of the agreement, in exchange for every 10 shares of Rite Aid common stock, Rite Aid shareholders will have the right to elect to receive either (i) one share of Albertsons Companies common stock plus approximately $1.83 in cash or (ii) 1.079 shares of Albertsons Companies stock. Depending upon the results of cash elections, upon closing of the merger, shareholders of Rite Aid will own a 28.0 percent to 29.6 percent stake in the combined company, and current Albertsons Companies shareholders will own a 70.4 percent to 72.0 percent stake in the combined company on a fully diluted basis. Immediately following completion of the merger and assuming that all Rite Aid shareholders elect to receive shares plus cash, Albertsons Companies will have approximately 392.9 million shares outstanding on a pro forma and fully diluted basis. Following the close of the transaction and the share exchange, Albertsons Companies’ shares are expected to trade on the New York Stock Exchange.

...

The integrated company will operate approximately 4,900 locations, 4,350 pharmacy counters, and 320 clinics across 38 states and Washington, D.C., serving 40+ million customers per week. Most Albertsons Companies pharmacies will be rebranded as Rite Aid, and the company will continue to operate Rite Aid stand-alone pharmacies.

Joey, not a bank, but good news on RAD today.

Here's what shareholders get. Also important to note that this transaction also constitutes a r/m to make Albertson's a publicly traded company.

From:
This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180220005785/en/

Under the terms of the agreement, in exchange for every 10 shares of Rite Aid common stock, Rite Aid shareholders will have the right to elect to receive either (i) one share of Albertsons Companies common stock plus approximately $1.83 in cash or (ii) 1.079 shares of Albertsons Companies stock. Depending upon the results of cash elections, upon closing of the merger, shareholders of Rite Aid will own a 28.0 percent to 29.6 percent stake in the combined company, and current Albertsons Companies shareholders will own a 70.4 percent to 72.0 percent stake in the combined company on a fully diluted basis. Immediately following completion of the merger and assuming that all Rite Aid shareholders elect to receive shares plus cash, Albertsons Companies will have approximately 392.9 million shares outstanding on a pro forma and fully diluted basis. Following the close of the transaction and the share exchange, Albertsons Companies' shares are expected to trade on the New York Stock Exchange.

As I recall, they bought restricted shares at .05 a price set by the gub'mint to get the capital ratios back into good standing and to have the Consent Agreement rescinded.

Those are probably the people who helped recapitalize the bank a few years back.

Update on store transfers - https://seekingalpha.com/news/3324300-rite-aid-transfers-625-stores-wba-1_3b?app=1&uprof=45#email_link

Glad I'm hanging on to RAD

and nice volume today.

"A leaner, greener 'new Rite Aid' unveiled at J.P. Morgan conference"
www.drugstorenews.com/article/leaner-greener-new-rite-aid-unveiled-jp-morgan-conference

Great day, today!

Also found the origin of the Trump comb-over - https://www.yourlifechoices.com.au/the_meeting_place/post/dennis-the-menace-where-is-he-now

Status of store transfers to WBA: https://seekingalpha.com/article/4135507-rite-aids-poison-pill#alt2

Happy New Year!

Happy Holidays to all the bankanistas!

Let's all get rich in 2018! Hey, wait. Didn't we make that New Year's resolution last year? And the year before? And in 2014, 2013, 2012, 2011 ...?

LOL.

Best wishes for 2018

i_a

Looks like the rumor mill is alive and well again

https://seekingalpha.com/article/4133480-real-opportunity-rite-aids-investors?

https://investorplace.com/2017/12/amazon-amzn-buy-rite-aid-rad-stock/#.Wj1NZN9KtQI

Unless it is reported somewhere, not without a lot of calculations. Many retail chains report monthly and quarterly per store sales or percentage increase/decrease of same-store year-over-year basis. That would give some comparison nationally. You might be able to extrapolate regional sales, but not real sure about how or if it would be meaningful.

At least this year and next I will be "getting back" some of my past tax payments due to the large subsidy.

Not sure about "great accomplishment" rather than "good idea", but executed very badly.

"if done correctly" is the key phrase here. I don't have a whole lot of faith in our gub'mint doing things correctly. I took a big leap of faith doing early retirement last year being under 62, but one I figured out how to game Obozocare it has worked out pretty good - $73/mo for silver plan. Wife goes to medicare next year and I'm in relatively good health.

Next earnings announcement scheduled for Jan 3.

Yep, got my flu shot last year at the Walgreens near my house. Walk-in clinics are a good alternative to the emergency room. Earlier this year my wife had some slight (we did not know at the time) bleeding and her doc told her to get to an emergency room. Since we knew it wasn't life threatening, we opted to go to the clinic my doc's practice operates, located in the same hospital where her doc told her to go. They had her in before she finished her paperwork, examined her very thoroughly, and gave her a scrip. $5 co-pay, that's all. Our insurance would have had us pay the first $500 if she went to the ER. Also, she could have been there all day waiting. Elderly neighbor went in to ER for broken arm a couple of weeks ago - sat there for 8 hours.

She also recently had her 100,000 mile check-up (colonoscopy). The butthole docs (pun intended) prescribed her a name brand cleanser that cost $158 and not covered by insurance. Pharmacists recommended another brand that has same ingredients, and faxed the docs to change it - insurance covered it 100%.

Lot of value in the pharmacy.

Over what period of time? Since the 2nd quarter 2016 10K to last 10K only about 22 million shares added. Considering over 1 billion outstanding, that's only about a 2.2% increase. Heavily diluted is buying an over-priced margarita at a restaurant happy hour.

OK. Glad we got that cleared up. Hope your dad is not too far underwater on RAD. Speaking of CVS, I like their model with the clinics and have not yet delved into the CVS-Aetna deal but that may be indicative of some future trends, but right now healthcare is a bit of a mess. Had a good run past few years with VCHSX (mutual fund), but need to re-evaluate that going in to 2018.

And I think you are missing my point. Rite Aid is not in trouble at present. Companies in trouble do not make donations like this - https://ih.advfn.com/p.php?pid=nmona&article=76298027 - since it comes out of the bottom line. Never said Rite Aid was getting bought out - that deal is dead; it just sold about 1800 stores. Rite Aid is not closing stores - Walgreens is closing some of the stores it bought from Rite Aid.

Yes, and it has been heavily shorted since the beginning of the year -
https://www.gurufocus.com/ownership/RAD Not sure why anyone would disagree with you on that since it's pretty obvious.

Is this a little more recent for you? https://www.chainstoreage.com/finance-0/rite-aid-walgreens-begin-store-transfer-process/

https://www.homeworldbusiness.com/rite-aid-completes-first-store-transfer-to-walgreens/

Here's some more enlightenment:

1. Read this http://fortune.com/2017/10/25/walgreens-rite-aid-5/
2. Ask your doc for a scrip for seconal to be filled at Rite Aid
3. Wash it down with your favorite high proof liquor
4. grab your teddy bear and blanket and rest

I would agree. But as you point out, many people do not follow the market and are probably unaware of the deal with Walgreens.

Calm down, turn off the CAPS LOCK and have a shot of thorazine. No alternative scenario here. Never said Rite Aid was "closing doors" as in going out of business if that is what you mean. Read this: https://www.usatoday.com/story/money/business/2017/10/25/walgreens-shutter-600-stores-part-rite-aid-deal/799242001/

My post was just an observation that the process has apparently begun. The shuttered Rite Aid was on the same block as the Walgreens, just across the street and on the opposite end of the block. I know of three Rite Aids in our small city, none of which are within a mile of a Walgreens and all still open. Two are on the opposite edges of town and geographically well positioned to bring in customers from the rural areas on the main east-west artery into town.

As in maintaining active pharmacy licenses? Makes sense.

FWIW, saw my first recently shuttered Rite Aid today in NC. I think most, if not all, NC stores were part of the deal.

Like our 2 terriers X 60!

Thanks. Home with a pre-holiday cold. Good timing as far as the holidays, but will lose out on a paying speaking gig tomorrow since it just hit and I'm still contagious. On other had, the market has been good to our retirement accounts this year and we can definitely afford it.

As we go into the holiday season, something to remember:

https://imgur.com/lGrUGkx (click to make it bigger if you are asking Santa for new eyeglasses this Christmas).

Pass it along to anyone who may be "offended" by receiving the "wrong" greeting this season.

And, with that, a Happy HanuKwanzMas to Everyone!

Since the small banks eke by on thin margins, I suspect that nay rate hike will help.

Thank you Capt Obvious. LOL. Yes, I would agree. We just don't know what it is.

Woot! woot!

Well, Salty & Joey, there was some good news for bank stocks today - https://www.magnetmail.net/actions/email_web_version.cfm?recipient_id=2542573458&message_id=14990604&user_id=KWE_1&group_id=4556141&jobid=39405473

Somewhere (can't remember the source - will look) I recall that Amazon would be deciding after November if and how (if the "if" proves true) it would enter the pharmacy space.

They are looking at it seriously. Latest update on their wholesale pharmacy licenses: https://www.reuters.com/article/us-amazon-com-retail/amazon-gains-wholesale-pharmacy-licenses-in-many-u-s-states-report-idUSKBN1CV388

Happy (almost belated) Turkey Day to all. First, the bird was stuffed, then I got stuffed. Black Friday tomorrow - any stocks on sale?

https://seekingalpha.com/news/3313864-cowen-analyst-says-amazon-buy-rite-aid?app=1&uprof=45#email_link