Skullcandy, Inc. SKUL disclosed that on June 24, it received an unsolicited proposal from Mill Road Capital to buy all the outstanding shares of the company for $6.05 a share. Later, the bidder also filed its proposed through Schedule 13D with the SEC. The company indicated that it would review the proposal.
Skullcandy reveaked that on June 23, it revealed the merger deal with Incipio LLC to buy its shares at $5.75 a share in cash for a total of about $177 million. Their merger deal offered a "go-shop" period until July 23, 2016, during which time the company, along with its financial advisors, could actively solicit alternative proposals from third parties to buy Skullcandy.
The company said while soliciting alternative proposals with Incipio, both are continuing to work towards the completion of their transaction if the company failed to get any superior transaction from the third parties or any transaction failed to get materialized.
Though the proposal is superior, Skullcandy pointed out that Mill Road proposal was conditioned on its due diligence completion and getting financing, as well as, other matters. Therefore, the company indicated that it would carefully review the proposals before it takes a decision. It would also consult with Incipio and financial advisors.
Skullcandy made it clear it doesn't plan to make any further comment on the Mill Road Capital proposal, or any other proposal that it may get, until such time as its completed its applicable review.
The stock traded 4.34 percent up on Monday in pre-market trading.
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