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99-Cent Only Stores Forms Group to Mull Buyout

Discount retail chain 99-Cent Only Stores has formed a special committee of independent directors to consider a $1.34 billion buyout offer, Reuters reported. Leonard Green & Partners recently up with the Schiffer/Gold family, which owns about 33% of the company’s outstanding stock, to make the offer. The special committee will consider other proposals and strategic alternatives which may be available, 99-Cent said in a statement.

(Reuters) – Discount chain 99-Cent Only Stores said it has formed a special committee of independent directors to consider the $1.34 billion buyout offer from the Schiffer-Gold family, which has teamed up with private equity firm Leonard Green & Partners L.P. to take the company private.

The special committee will consider other proposals and strategic alternatives which may be available, 99-Cent said in a statement, adding that the proposal from the Schiffer-Gold family and Leonard Green has not yet been evaluated.

In March, the Schiffer-Gold family, which owns about 33 percent of the company, joined Leonard Green to make a $19.09 per share offer for 99-Cent Only Stores.

Shares of 99-Cent rose nearly 3 percent to $20.35 in pre-market trading. They closed at $19.80 on Friday on the New York Stock Exchange. (Reporting by Renju Jose in Bangalore;Editing by Vyas Mohan)