Newspaper article St Louis Post-Dispatch (MO)

SuperValu to Retain Larger Stake in Save-A-Lot after Spinoff

Newspaper article St Louis Post-Dispatch (MO)

SuperValu to Retain Larger Stake in Save-A-Lot after Spinoff

Article excerpt

Grocery store operator SuperValu would own 40 percent of Save-A- Lot's outstanding shares after it completes a proposed spinoff of the discount supermarket chain, a larger amount than was previously disclosed.

When Eden Prairie, Minn.-based SuperValu announced in January that its board of directors approved a potential spinoff of Earth City-based Save-A-Lot, SuperValu said the company would retain just under 20 percent of outstanding Save-A-Lot shares, with SuperValu stockholders owning at least 80.1 percent.

In a regulatory filing Thursday, SuperValu said it would retain a 40 percent stake after Save-A-Lot's spinoff as an independent, publicly traded company, and that within two years, it would reduce its ownership to 20 percent.

SuperValu also previously said the spinoff of Save-A-Lot's common stock was intended to be a tax-free transaction; but in Thursday's regulatory filing, SuperValu said "the distribution will not be eligible for treatment as a tax-free distribution for U. …

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