Crown Central to merge with Rosemore
Crown Central Petroleum Corp. Monday announced plans to merge with Rosemore Inc.. Rosemore will offer $10.50/share for shares of Crown it does not already own. The third largest shareholding group in Crown has agreed to vote for the merger. Previously, shareholders had voted against a merger with Rosemore.
Crown Central Petroleum Corp. Monday announced plans to merge with Rosemore Inc.. Rosemore will offer $10.50/share for shares of Crown it does not already own.
Rosemore holds 49% of Crown's Class A common stock and 11% of its Class B common stock.
The merger agreement acquires the approval of the stockholders. Shareholders of Crown Central rejected a proposed merger with Rosemore in August (OGJ Online, Aug. 24, 2000).
Crown said that the Novelly group, which owns 14.7% of Class A stock and 3.48% of Class B stock, has now agreed to vote for the merger. If the merger is terminated, the Novelly group will sell its Crown stock to Rosemore, other than in certain limited circumstances.
Crown will continue to operate as a separate company under its current name.
Crown was briefly expected to link with Apex Oil Co., its second largest shareholder. Apex owns 14.7% of Crown's Class A common stock and 3.5% of its Class B common stock. Crown extended the deadline twice for Apex to make a formal offer of $10.50/share, but the formal offer was never made (OGJ Online, Nov. 30, 2000).
Crown operates two Texas refineries with a total of 152,000 b/d capacity, 329 gasoline stations and convenience stores in the Mid-Atlantic and Southeastern US, and 13 product terminals along the Colonial, Plantation, and Texas Eastern Products pipelines.