SAN DIEGO, Aug. 25, 2016 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of AEP Industries Inc. (NASDAQ: AEPI) breached their fiduciary duties in connection with the proposed sale of the Company to Berry Plastics Group, Inc. (NYSE: BERY). AEP manufactures and markets flexible plastic packaging films in North America.
On August 25, 2016, AEP announced it had signed a definitive merger agreement with Berry. Under the terms of the agreement AEP shareholders will elect to receive either $110 in cash or 2.5011 shares of Berry common stock per AEP share in the transaction, subject to an overall 50/50 proration to ensure that 50% of the total outstanding AEP shares are exchanged for the cash consideration. Upon closing, AEP shareholders will own approximately 5 percent of Berry on a fully diluted basis. Based on Berry's closing stock price on August 23, 2016, the date the exchange ratio was set, the blended value of the merger consideration represented $110 per AEP share. AEP shareholders will be subject to the future volatility and price fluctuation of the common stock of Berry. Based on August 24, 2016 closing price of Berry's stock, the blended value of the merger consideration represented $109.12 per AEP share.
The investigation concerns whether the AEP board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for AEP shares of common stock. Nationally recognized Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration.
If you are a shareholder of AEP and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number where you can be reached.
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Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
SOURCE Johnson & Weaver, LLP