Atlanta, GA 6/25/12 (StreetBeat) -- Fidelity National Financial Inc, the No. 1 U.S. property title insurer, will buy restaurant operator J Alexander's Corp (Nasdaq: JAX) for about $72 million.
Shareholders of J Alexander's can elect to receive $12 per share in cash or a combination of $3 in cash and one share of Class A common stock of American Blue Ribbon Holdings Inc (Nasdaq:ABRH), Fidelity said in a statement. When issued, the ABRH shares will be listed for trading on Nasdaq.
The offer represents a 21 percent premium to J Alexander's stock's Friday close.
J Alexander's will be merged with a unit of ABRH, a newly formed restaurant operating subsidiary of Fidelity.
Fidelity's restaurant holdings under ABRH currently include the Village Inn, Bakers Square and Max & Erma's chains.
J Alexander's, which operates 33 restaurants in 13 states in the United States, may solicit superior proposals from third parties during 30 days following execution of deal, the company said in a separate statement.
Fidelity earlier this year signed a deal to buy casual dining chain O'Charley's Inc for about $221 million.
Fidelity National shares closed at $19.02 on the New York Stock Exchange, while J Alexander's shares closed at $9.90 on Friday on the Nasdaq.
Please contact www.thestreetbeat.com for interest in our latest investor relations platform the “CEO Interview Series” with its host Steve Kanaval. The package includes a one-on-one interview with a seasoned industry professional; published segment to our web site with embedded audio/video file; and a compressed file that can be easily e-mailed out to your current and/or potential investors. Please e-mail firstname.lastname@example.org or call (662) 392-0740 for pricing and scheduling.