Safeway Completes Distribution of Blackhawk Network Holdings Shares
As part of its sale agreement, Safeway has completed its spin-off of Blackhawk Network Holdings by distributing 37.8 million shares to stockholders. Safeway previously took the gift and prepaid card unit public last year, but still held a 72.2% stake in the business, according to BusinessWeek. How might this news affect Safeway’s sale to Cerberus? Will it affect the merger at all, especially considering that Blackhawk also supplies Albertsons?
“Today marks the completion of the planned separation of Blackhawk Network Holdings from Safeway,” said Bill Tauscher, Blackhawk CEO. “As an independent, publicly-owned company, we believe Blackhawk has increased flexibility to pursue new growth strategies, meet the needs of our customers and create opportunities for our stockholders and employees. We thank Safeway’s board and management for their support and for working to ensure that our company has a solid foundation from which to grow our business over the long-term.”
Following news of the sale, Safeway’s stock was relatively flat. As of 1:55 PM ET, Safeway’s stock rose $0.06 to $34.08, a 0.18% increase.
The spin-off is not expected to adversely impact Blackhawk’s operations, according to a press release. The business has extended its distribution agreement with Safeway to be its exclusive provider of prepaid products in all its U.S. grocery stores through 2019, including prepaid gift cards, prepaid telecom products, and general purpose reloadable debit products.
What else can we expect to see from Safeway as the company leads up to its merger? Stay tuned to AndNowUKnow as we continue following any further updates from the company.
