KarpReilly Offers To Take Charlotte Russe Private

(Reuters) – Charlotte Russe Holding Inc’s (CHIC.O: Quote, Profile, Research, Stock Buzz) shareholder KarpReilly Capital Partners LP offered to buy the women’s-apparel retailer in a deal valued as much as $198.6 million, sending its shares up 25 percent.

The private investment firm, which made its proposal along with H.I.G. Capital LLC, said the offer price range of $9.00 to $9.50 per share represents a premium of 31 percent to 38 percent to the retailer’s Tuesday closing price.

KarpReilly, which has a 5.4 percent stake in the company, and H.I.G. intend to fund the acquisition with 100 percent equity available from committed investment funds.

As of July 29, Charlotte Russe had 20.9 million shares outstanding.

KarpReilly, which makes most of its investments in consumer goods companies, said it had originally approached Charlotte Russe to pursue a potential acquisition almost a year ago, but was turned down by the company’s board of directors.

Shares of the San Diego-based company rose to a high of $8.60 before paring some gains to trade up $1.58 at $8.47 Wednesday afternoon on Nasdaq. (Reporting by Anne Pallivathuckal in Bangalore; Editing by Deepak Kannan)