Best Buy founder 71-year-old chairman Richard Schulze has, as expected, submitted a proposal to acquire the brick-and-mortar retailer, CNET reported Monday morning.
Under the terms of the deal, Schulze, who owns about 20 percent of Best Buy already, would pay between $24 and $26 per share in cash to the company to acquire the outstanding shares he doesn't own, CNET says. If Best Buy were to accept the offer, the company would score a premium of between 36 percent and 47 percent on its Friday closing price of $17.64.
Much of the money will come from what the letter calls “premier private-equity firms with deep experience in retail who are interested in a possible acquisition of Best Buy” and debt financing, Bloomberg reports. The Richfield, Minnesota-based electronics chain had about $1.7 billion in long-term debt as of May 5, according to regulatory filings.
Schulze recently began recruiting executives for his buyout bid.