Two American shareholder firms RM Law and WeissLaw have launched an investigation into potential violation claims against the board of directors of Zoe’s Kitchen.
Earlier this week, Cava Group signed a definitive agreement to acquire the fast casual restaurant group for $300m. The investigation is related to possible breaches of fiduciary (trustee) duty and other violations of law regarding the acquisition.
Go deeper with GlobalData
As part of the agreement, Zoe’s Kitchen shareholders will receive $12.75 in cash for each share of Zoe’s common stock.
WeissLaw noted that the $12.75 per-share bid comes just four years after the Joe’s IPO, during which the shares were priced at $15 per share, or $2.25 above Cava’s per-share offer.
WeissLaw is investigating whether Zoes’s board acted in the best interests of its public shareholders to maximise shareholder value prior to entering into the agreement.
Both companies are asking shareholders to contact them to learn more about this class action, as well as discuss any concerns regarding the announcement.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataAnother analyst points to the deal’s “hefty $17m termination fee” as an indicator of Cava’s eagerness to “close the deal before the market wakes up.”
Zoe’s Kitchen currently operates 261 domestic restaurant locations, while Cava operates 66 restaurants in the US.
Following the transaction, the combined entity will have 327 restaurants in 24 US states.
