F9 Investments Proposes To Buy LL Flooring For $3/shr; Stock Up

(RTTNews) - F9 Investments, LLC or F9, said on Tuesday that it has sent an offer to LL Flooring Holdings, Inc. (LL), a retailer of hard-surface flooring, to acquire all shares of LL for $3 per share. F9, together with its affiliates, collectively owns around 8.8 percent of LL.

Following the news, LL was trading up by 4.61 percent at $2.95 per share in the pre-market trade on the New York Stock Exchange.

The proposed offer is fully financed through cash on hand and borrowing under an existing revolving credit facility from an affiliate of F9.

The value being offered by F9 reflects LL's deteriorating financial performance, as disclosed in its third quarter results, as well as the Board's refusal to meaningfully engage with F9 and its affiliates, following F9's previously announced acquisition proposal.

F9's owner, Thomas Sullivan said, "We believe our offer represents a compelling, immediate, and certain cash value for LL's shareholders, in light of the company's deteriorating financial condition and declining stock price, which in our view reflects the market's lack of confidence in the current Board's strategy."

On May 26, F9 had presented the Board of LL with a cash offer of $5.76 per share. However, LL summarily rejected the proposal and F9 withdrew this offer following LL's continued underperformance in the quarter ended June 30.