Back Yard Burgers (MM) (NASDAQ:BYBI)
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From Jun 2019 to Jun 2024
Back Yard Burgers, Inc. (NASDAQ:BYBI) (the "Company")
announced today that it has received a letter dated August 24, 2006,
from BBAC, LLC ("BBAC") expressing a desire to acquire all of the
Company's common stock for $6.10 per share, subject to due diligence,
financing and other conditions stated in the letter. The August 24
letter was sent as a follow-up to a letter to the Board dated April
28, 2006, which contained a similar proposal from Cherokee Advisors,
LLC ("Cherokee Advisors"). Cherokee Advisors and BBAC are affiliated
with Reid Zeising.
On June 7, 2006, the Company announced that it decided not to
pursue the proposal contained in the April 28 letter, principally
because of Cherokee Advisors' failure over a period of months to carry
through with its stated desire to negotiate a merger agreement by,
among other things, refusing to sign a customary confidentiality
agreement as a condition to the negotiation. The Board also based its
decision on Cherokee Advisors' failure to substantiate that it had
sufficient assets and funding necessary to perform its obligations
under any merger agreement and fund the proposed transaction.
After June 7, 2006, and prior to receipt of the letter dated
August 24, 2006, the Board had informal discussions with Mr. Zeising
on several occasions regarding a possible acquisition of the Company
by Cherokee Advisors and BBAC.
On August 8, 2006, the Company retained Morgan Keegan & Company,
Inc. to, among other things, advise the Board with respect to, and
assist the Board in analyzing proposals to acquire the Company from
potential acquirers, including Cherokee Advisors and BBAC.
On August 28, 2006, the Board of Directors of the Company met to
review the most recent proposal from BBAC. After careful consideration
of the terms included in the letter dated August 24, 2006, and draft
confidentiality agreement, the Board, in consultation with its legal
and financial advisors, determined that the terms of the proposed
confidentiality agreement were not acceptable and decided not to move
forward with further negotiations with Cherokee Advisors or BBAC at
this time unless, among other things, Cherokee Advisors and BBAC
entered into a customary confidentiality agreement on terms acceptable
to the Board. The Board did not review the substantive terms of the
proposal from BBAC or make any determination whether the proposed
offering price of $6.10 per share was fair to shareholders of the
Company.
The Board will continue to review any proposals from Cherokee and
BBAC in accordance with its fiduciary duties.
Back Yard Burgers operates and franchises quick-service
restaurants in 21 states, primarily in markets throughout the
Southeast region of the United States. The restaurants specialize in
charbroiled, freshly prepared, great-tasting food. As its name
implies, Back Yard Burgers strives to offer the same high-quality
ingredients and special care typified by outdoor grilling in the
backyard. Its menu features made-to-order gourmet Black Angus
hamburgers and chicken sandwiches - charbroiled over an open flame,
fresh salads, chili and other specialty items, including hand-dipped
milkshakes, fresh-made lemonade and fresh-baked cobblers.