June 10--Grocery store operator SuperValu would own 40 percent of Save-A-Lot's outstanding shares after it completes a proposed spinoff of the discount supermarket chain, a larger amount than was previously disclosed.
When Eden Prairie, Minn.-based SuperValu announced in January that its board of directors approved a potential spinoff of Earth City-based Save-A-Lot, SuperValu said the company would retain just under 20 percent of outstanding Save-A-Lot shares, with SuperValu stockholders owning at least 80.1 percent.
In a regulatory filing Thursday, SuperValu said it would retain a 40 percent stake after Save-A-Lot's spinoff as an independent, publicly traded company, and that within two years, it would reduce its ownership to 20 percent.
SuperValu also previously said the spinoff of Save-A-Lot's common stock was intended to be a tax-free transaction; but in Thursday's regulatory filing, SuperValu said "the distribution will not be eligible for treatment as a tax-free distribution for U.S. federal income tax purposes."
A SuperValu spokesman declined to comment about the regulatory filing. In a press release, the company said the filing was part of its preparations to allow for a potential spinoff of Save-A-Lot into a stand-alone public company.
Save-A-Lot had 1,360 company-owned and licensed stores as of Feb. 27. The chain started in 1977 as a single store in Cahokia and was acquired by SuperValu in 1992 for $1.1 billion.
For the fiscal year ended Feb. 27, Save-A-Lot posted a profit of $67 million on $4.6 billion in net sales.
Lisa Brown --314-340-8127
@lisabrownstl on Twitter
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