Shareholders of Applebee’sInternational and MidWest Air Group have recently approved ownership changes within their respective companies.
Those at Applebee’s voted to approve IHOP Corp.’s $1.9 billion acquisition of therestaurant chaindespite differences among independent shareholder advisory firms on whether torecommend the deal. Applebee’s said in a statement that votes in favor of thedeal represented more than 70 percent of its common shares.
Applebee’s, hit hard by weakenedconsumer spending and competition from rival bar-and-grill chains, in Julyagreed to be bought IHOP for $25.50 a share plus debt. The company saidyesterday the deal is expected to close by Nov. 29.
In February, following months ofbehind-the-scenes maneuvering and a brief proxy fight with activist shareholderRichard Breeden, Applebee’s said it was considering its strategic options,including a possible sale. In recent weeks, independent advisory firms,Institutional Shareholder Services and Glass Lewis & Co., recommended thatApplebee’s shareholders vote in favor of the proposed sale. Rival firms, ProxyGovernance and Egan-Jones Proxy Services, had advised Applebee’s shareholdersto oppose the deal.
IHOP CEO Julia Stewart, a formerApplebee’s president, said on a conference call last week that the twocompanies were already working on the integration process. On Monday, Applebee’s said itsyear-to-date sales through September in restaurants open for at least a yearwere down 1.8 percent.
Meanwhile, shareholders of MidWest Air approved a merger agreement that would provide for the acquisition of the company by MidWest Air Partners LLC, an affiliate of TPG Capital LP, formerly Texas Pacific Group.
As part of the agreement, each outstanding share of MidWest’s common stock will be converted into the right to receive $17 per share in cash.
The transaction is expected to culminate in the fourth quarter of this year, and is subject to customary conditions inclduing anti-trust approvals.