Harwood Feffer LLP Announces Investigation Of Advance America, Cash Advance Centers, Inc.
NEW YORK, Feb. 17, 2012 /PRNewswire/ -- Harwood Feffer LLP ( www.hfesq.com) is investigating potential claims against the board of directors of Advance America, Cash Advance Centers, Inc. ("Advance America" or the "Company") (NYSE: AEA) concerning the Company's efforts to sell the itself to Grupo Elektra, S.A.B. de C.V. ("Grupo Elektra") in a transaction valued at approximately $780 million.
On February 15, 2012, Advance America announced that it had entered into a definitive agreement to be acquired by subsidiaries of Grupo Elektra in an all-cash transaction. According to the terms of the deal, Advance America shareholders will receive $10.50 for each share of the company they own. The agreement was unanimously approved by Advance America's board of directors. The transaction is expected to close during the first half of calendar year 2012.
On October 26, 2011, Advance America reported financial results for the third quarter of fiscal year 2011 that beat analyst expectations. In particular, the company reported diluted EPS of $0.24 on revenue of $158.88 million, while analysts polled by Bloomberg had been expecting EPS of only $0.12 on revenue of $145.00 million. In addition, at least one market analyst has released a target price for Advance America that values the company's stock at $11.00 per share, higher than the value being offered by Grupo Elektra as a part of the proposed transaction.Our investigation concerns whether the board of directors is fulfilling its fiduciary duties, maximizing the value of Advance America, disclosing all material benefits and costs and obtaining full and fair consideration for Advance America shareholders. If you own Advance America shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
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