Business
El Pollo Loco Holdings, Inc. Adopts Limited-Duration Shareholder Rights Plan
Board Takes Action in Response to Biglari Capital’s Rapid Stock Accumulation Board Committed to Protecting Long-Term Value for All Shareholders COSTA MESA,
About this update from El Pollo Loco Holdings, Inc.
[{"type":"text","content":"Board Takes Action in Response to Biglari Capital’s Rapid Stock Accumulation Board Committed to Protecting Long-Term Value for All Shareholders COSTA MESA, Calif., Aug. 09, 2023 (GLOBE NEWSWIRE) -- El Pollo Loco Holdings, Inc. (“El Pollo Loco” or the “Company”) (Nasdaq: LOCO) today announced that its Board of Directors has unanimously adopted a limited-duration shareholder rights plan (“Rights Plan”) to protect the best interests of all El Pollo Loco shareholders. The Rights Plan is effective immediately and will expire on August 7, 2024. The Board may consider an earlier termination of the Rights Plan if circumstances warrant. The limited-duration Rights Plan was adopted in response to the rapid and significant accumulation of El Pollo Loco stock by Biglari Capital Corp. (together with its affiliates, “Biglari Capital”). Biglari Capital initially disclosed that it had acquired approximately 9.1% of the Company’s outstanding shares in a securities filing on July 28, 2023. Pursuant to a securities filing made yesterday, Biglari Capital disclosed that exactly one week later, on August 4, 2023, it had already increased its ownership in the Company beyond 10%, and as of August 8, 2023, it held 11.3% (which represents over 12% of the Company after taking into account the repurchase announced yesterday). In adopting the rights plan, the Board noted that Biglari Capital has a track record of acquiring substantial and sometimes controlling interests in public restaurant companies. The Rights Plan is intended to enable the Company’s shareholders to realize the long-term value of their investment, ensure that all shareholders receive fair and equal treatment in the event of any proposed takeover of the Company, and to guard against tactics to gain control of the Company without paying all shareholders an appropriate premium for that control. The Rights Plan applies equally to all current and future shareholders and is not intended to deter offers or preclude the Board from considering offers that are fair and otherwise in the best interest of the Company’s shareholders. “El Pollo Loco’s Board is committed to protecting our shareholders,” said William R. Floyd, Chair of the Board. “The adoption of this Rights Plan is intended to ensure that shareholders are able to realize the full potential of their investment in the Company and to preven...