June 12, 2018 / 2:12 PM / 4 months ago

Vintage Capital raises Rent-A-Center offer to $14 per share

(Reuters) - Buyout firm Vintage Capital Management on Tuesday sweetened its offer for Rent-A-Center Inc (RCII.O) to $14 per share in cash, a day after the retailer ended its sale process saying it had not received a satisfactory takeover offer.

The retailer’s shares were up 10 percent at $12 in morning trading, well below the latest offer.

Rent-A-Center earlier said it received an increased offer from a suitor, shortly after it ended a strategic review and said it was no longer up for sale.

The company had been under pressure from activist investors Engaged Capital and Marcato Capital to sell itself since last year.

Rent-A-Center’s board had put the company up for sale last year and again early this year, but rejected buyout offers in July saying it would continue to focus on its strategic plan.

Florida-based Vintage Capital had offered the rent-to-own retailer $15 per share in July last year.

Vintage, which owns nearly 6 percent of the rent-to-own retailer, lowered its bid to $13 per share last November.

“We strongly believe that our proposal represents a value-maximizing outcome for RCII stockholders,” Vintage Capital said in its latest letter to Rent-A-Center.

Reporting by Nivedita Balu in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta

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