No Duh! NICK’s Not Being Bought Out

Just as I said in my eletter, Nicholas Financial ($NICK) isn’t being bought out. The company made the news official this morning with a press release. The stock is down, but honestly, today’s news shouldn’t be a surprise to anyone.

In my mind, this is really good news. The company is willing to turn down an unacceptable offer. Good for them and good for us.

Here’s the statement:

Nicholas Financial, Inc. today announced the completion of its previously announced exploration of possible strategic alternatives for the Company. The Company’s strategic alternatives review was conducted under the supervision of the Company’s Board of Directors with the assistance of an independent financial advisor, Hyde Park Capital Advisors, LLC. After careful consideration of alternatives, the Company has determined that its shareholders’ interests will be best served by continuing to operate as a stand-alone entity.

As previously announced, the review process involved, among other things, a consideration of the possible sale of the Company. With the assistance of Hyde Park Capital Advisors, LLC, a broad universe of domestic and international industry participants and private equity sources were solicited. The Company received several indications of interest related to the sale of the Company. After a deliberate and careful process, the Board has determined that the proposals received were not in the Company’s and its shareholders’ best interests and that the Company would likely generate more long-term value with its current stand-alone strategy.

The Company also previously announced that its Board of Directors would review potential buy-side alternative opportunities. While the Company has not to date identified a buy-side opportunity it intends to pursue, the Company will continue to evaluate such opportunities as they arise, despite the conclusion of this previously announced review process.

Throughout its review of strategic alternatives, the Company has continued to implement its stand-alone strategy, including the continued evaluation of opportunities to open additional, or expand existing, branch offices.

Posted by on April 28th, 2011 at 10:33 am

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