Amidst huge pressure from investors, PetSmart, Inc. (NASDAQ:PETM) will consider the alternative to sell the company. Jana Partners LLC is known to head the movement with other shareholders and the investment firm claimed that PetSmart, Inc. (NASDAQ:PETM) has been trying to hide poor results from shareholders, as show in one of its documents filed with the SEC. Jana Partners has initiated brand new position in PetSmart, Inc. (NASDAQ:PETM) during the second quarter of 2014. (You can list of entire holdings of Jana Partners).
According to a press release from PetSmart, Inc. (NASDAQ:PETM), the company might consider a potential sale to ensure maximum profit for its shareholders. PetSmart is working with JP Morgan Securities LLC and Wachtell, Lipton, Rosen & Katz for finalizing the process. According to the Chairman of PetSmart, Inc. (NASDAQ:PETM), Gregory P. Josefowicz,
“Notwithstanding our confidence in the Company’s future prospects, following a detailed Board review of the Company over the last several months, including many constructive conversations with a wide range of shareholders, we have decided to explore options to maximize shareholder value, including a potential sale of the Company.”
Although he further added, “We are not providing a timetable for our process, nor do we intend to comment further or update the market until it is complete.” The board of directors will consider the current financial condition of the company and devise a strategy for maximum benefit for the company as well as the shareholders.
Earlier, the company announced second quarter results on August 19, 2014 with earnings of $0.98 per share and a 10% improvement from its earnings of $0.89 in the same period last year. The net income for the quarter was $98.1 million and net sales stood at $1.7 billion. The company did not make any purchases in PetSmart stocks and distributed dividends worth $19 million. Its shares witnessed a spike because of the possible sale announcement.
This article has been written by Prakash Pandey and edited by Serkan Unal.