NEW YORK, Feb. 17, 2012 /PRNewswire/ -- Harwood Feffer
LLP (www.hfesq.com) is investigating potential claims against the
board of directors of Advance America, Cash Advance Centers, Inc.
("Advance America" or the "Company") (NYSE: AEA) concerning the
Company's efforts to sell the itself to Grupo Elektra, S.A.B. de
C.V. ("Grupo Elektra") in a transaction valued at approximately
$780 million.
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On February 15, 2012, Advance
America announced that it had entered into a definitive agreement
to be acquired by subsidiaries of Grupo Elektra in an all-cash
transaction. According to the terms of the deal, Advance
America shareholders will receive $10.50 for each share of the company they own.
The agreement was unanimously approved by Advance America's
board of directors. The transaction is expected to close
during the first half of calendar year 2012.
On October 26, 2011, Advance
America reported financial results for the third quarter of fiscal
year 2011 that beat analyst expectations. In particular, the
company reported diluted EPS of $0.24
on revenue of $158.88 million, while
analysts polled by Bloomberg had been expecting EPS of only
$0.12 on revenue of $145.00 million. In addition, at least one
market analyst has released a target price for Advance America that
values the company's stock at $11.00
per share, higher than the value being offered by Grupo Elektra as
a part of the proposed transaction.
Our investigation concerns whether the board of directors is
fulfilling its fiduciary duties, maximizing the value of Advance
America, disclosing all material benefits and costs and obtaining
full and fair consideration for Advance America
shareholders.
If you own Advance America shares and wish to discuss this
matter with us, or have any questions concerning your rights and
interests with regard to this matter, please contact:
Robert I. Harwood, Esq.
Benjamin Sachs-Michaels
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers: (877) 935-7400
(212)935-7400
Email: bsachsmichaels@hfesq.com
Website: http://www.hfesq.com
Harwood Feffer has been
representing individual and institutional investors for many years,
serving as lead counsel in numerous cases in federal and state
courts. Please visit the Harwood Feffer LLP website
(http://www.hfesq.com) for more information about the firm.
Attorney Advertising. © 2011 Harwood Feffer LLP. The law firm
responsible for this advertisement is Harwood Feffer LLP
(www.hfesq.com). Prior results do not guarantee or predict a
similar outcome with respect to any future matter.
SOURCE Harwood Feffer LLP