Benihana, the Miami-based chain of Japanese restaurants, announced that it is canceling plans to sell the company and instead will change its stock structure,
the
South Florida Business Journal
reported.
Last July, the company said it would consider strategic options, including a possible sale of the company, the journal report noted. In the recent announcement, it cited long-term opportunities for the business as the reason it would not put itself up for sale.
Benihana said it would consolidate its two major classes of stock, pending shareholder approval. All Class A shares would be converted into common shares on a one-for-one basis after May 23, the business journal reported.
As of Jan. 28, Benihana had 9.86 million Class A shares outstanding and 5.61 million shares of common [stock] outstanding. Benihana of Tokyo, a family trust represented by Keiko Ono Aoki, the widow of Benihana founder Rocky Aoki, owns 2.15 million Class A shares.
Combining the two classes of stock will give the shareholders equal rights, the article noted. Holders of Class A stock received one tenth of a vote per share, vs. one vote per share for holders of common stock. Holders of Class A stock were entitled to elect a quarter of the company’s directors. (Source:
South Florida Business Journal,
May 16, 2011.)
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