Alico May Sell Itself

Fort Myers, Fla.-based Alico (NASDAQ: ALCO  ) may be for sale.

On Wednesday, the agribusiness and land management company announced that a special committee of its Board of Directors has hired Deutsche Bank to give it financial advice, and law firm Greenberg Traurig to provide legal counsel, on "potential strategic and financial transaction alternatives" the company might take. Such alternatives could include merger with another company in whole or in part, or even selling all or part of Alico.

Alico is exploring its options after receiving notice that its majority shareholder, Atlantic Blue Group, has decided to sell its entire stake in Alico (once it finds a buyer). Atlantic Blue owns more than 51% of Alico's shares outstanding, and is by far the largest owner of the company. The next-largest stakeholder, hedge fund manager GMT Capital, owns only 8.2% .

In a statement, Alico said Atlantic Blue Group intends to "work cooperatively" with the special committee to reach an outcome that benefits both parties. However, Alico notes that there is no guarantee that any such transaction will ultimately take place.

Alico owns about 130,400 acres of land in five Florida counties. Its principal lines of business are citrus groves, improved farmland including sugar cane, cattle ranching and conservation, and related support operations. It also receives royalties from rock mining and oil production.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2312960, ~/Articles/ArticleHandler.aspx, 9/25/2016 6:55:25 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
ALCO $27.67 Up +0.49 +1.80%
Alico CAPS Rating: No stars