Economy

Rite Aid says it rejected Spear Point’s buyout offer

FILE PHOTO: A woman shops inside of a Rite Aid store in New York City, New York, U.S., June 25, 2020. REUTERS/Lucas Jackson/File Photo

(Reuters) -Rite Aid Corp said on Thursday it had rejected a proposal from Spear Point Capital Management to acquire all of its shares.

The pharmacy chain’s board said the proposal was not credible as it had no evidence of financing and required multiple months of exclusivity, among other reasons.

The New York Post reported late on Wednesday that the private equity firm had made its offer in April, valuing Rite Aid (NYSE:RAD) at more than $800 million.

Rite Aid had a market capitalization of $392.7 million as of Wednesday’s close.

The company will “as always, be responsive to credible proposals that will enhance stockholder value”, it said.

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