MINNEAPOLIS--(BUSINESS WIRE)--SUPERVALU INC. (NYSE: SVU) (the “Company”) today announced a 1-for-7 reverse split of its common stock, effective as of the close of business on August 1, 2017. Beginning on August 2, 2017, the Company’s common stock will trade on the NYSE on a split-adjusted basis.
At the Company’s annual meeting of stockholders on July 19, 2017, the Company’s stockholders authorized the Board of Directors to amend the Restated Certificate of Incorporation of the Company to effect a reverse stock split at a ratio in the range of 1-for-5 to 1-for-7.
When the reverse stock split becomes effective, the number of authorized shares of the Company’s common stock will decrease to 57,142,857, while the number of issued and outstanding shares will be reduced from approximately 268,504,100 to 38,351,030. No fractional shares will be issued following the reverse stock split. In lieu of any fractional shares, any holder of less than one share of common stock will be entitled to receive cash for such holder’s fractional share. The reverse stock split will not impact the authorized number of shares of preferred stock of the Company, none of which are outstanding.
The reverse stock split will reduce the number of shares of common stock available for issuance under the Company’s equity compensation plans in proportion to the reverse stock split ratio. Upon effectiveness, the reverse stock split will cause a reduction in the number of shares of common stock issuable upon exercise or vesting of equity awards in proportion to the reverse stock split ratio and will cause a proportionate increase in any exercise price of such awards. The number of shares of common stock issuable upon exercise or vesting of equity awards will be rounded to the nearest whole share.
The Company’s common stock will continue to trade on the NYSE under the symbol “SVU.” The new CUSIP number for the common stock following the reverse stock split is 868536 301.
Registered stockholders holding all of their shares of common stock electronically in book-entry form do not need to take any action in connection with the reverse stock split. For those stockholders holding physical stock certificates, the Company’s transfer agent, Wells Fargo Shareowner Services, will send instructions for the surrender of such stockholders’ current certificates in exchange for a statement of holding. When such stockholders submit their certificates representing pre-split shares of common stock, their post-split shares, if any, will be held electronically in direct registration book entry account. This means that, instead of receiving a new stock certificate, these stockholders will receive a statement of holding that indicates the number of post-split shares, if any, they own. The Company will no longer issue physical stock certificates unless a stockholder makes a specific request for a share certificate representing the stockholder’s post-split ownership interest or if the stockholder holds restricted shares.
Additional information about the reverse stock split can be found in the Company’s definitive proxy statement filed with the Securities and Exchange Commission on June 5, 2017, a copy of which is also available at www.sec.gov or at www.supervalu.com under the SEC Filings tab located on the Investors page.
About SUPERVALU INC.
(The following information on sales, store counts and employees is as of SUPERVALU’s last fiscal year end and does not include Unified Grocers)
SUPERVALU INC. is one of the largest grocery wholesalers and retailers in the U.S. with annual sales of approximately $12 billion in fiscal 2017. SUPERVALU serves customers across the United States through a network of 2,363 stores including 1,902 stores operated by wholesale customers serviced primarily by the Company’s food distribution business and 217 traditional retail grocery stores operated under five retail banners in six geographic regions (store counts as of February 25, 2017). Headquartered in Minnesota, SUPERVALU has approximately 29,000 employees.
Founded in 1922, Unified Grocers is a wholesale grocery distributor that supplies independent retailers throughout the western United States. Unified and its subsidiaries offer independent retailers all the resources they need to compete in the supermarket industry.
For more information about SUPERVALU visit www.supervalu.com. Contacts
Steve Bloomquist, 952-828-4144
Jeff Swanson, 952-903-1645