Rent-A-Center Rejects Proposal From Vintage; Stock Up

(RTTNews) - Shares of Rent-A-Center Inc. (RCII) increased about 13 percent in pre-market trade, after the company disclosed that it had received an unsolicited buyout offer from private-equity firm Vintage Capital Management LLC, that it rejected.

In a private letter, dated June 20, 2017, from Vintage Capital Management, LLC to Rent-A-Center Inc.'s financial advisor, Vintage made an unsolicited proposal to acquire 100% of the common stock of Rent-A-Center in a go-private transaction for $15.00 per share.

On July 5, 2017, following a thorough review by the Rent-A-Center Board of Directors, with the assistance of its financial and legal advisors, the Company formally rejected Vintage's proposal.

The Rent-A-Center said its board remains open-minded and regularly reviews the Company's strategic priorities and opportunities and assesses them against a variety of strategic options. The Board determined that Vintage's proposal significantly undervalues the Company and that the strategic plan currently being implemented by Rent-A-Center positions the Company to deliver greater value to its stockholders than Vintage's inadequate and opportunistic proposal.

Rent-A-Center's strategic plan includes a renewed focus on strengthening its Core U.S. business; optimizing and growing its Acceptance Now business; and leveraging technology investments to expand distribution channels and integrate retail and online offerings.

In Tuesday's pre-market trade, RCII is currently trading at $12.49, up $1.39 or 12.52 percent.