Rent-A-Center Signs Standstill Agreement Amid Buyout Talks

January 22, 2018  by Larry Thomas in Business Strategy, Industry   

According to a filing with the Securities and Exchange Commission, the agreement includes a so-called standstill provision that prohibits Vintage Capital, the majority owner of rent-to-own chain Buddy’s Home Furnishings, from making a public tender offer or acquisition proposal. The firm also is prohibited from soliciting proxies from Rent-A-Center shareholders.

In the filing, Vintage Capital also disclosed it owns about 5.9% of Rent-A-Center’s stock.

The non-disclosure agreement expires in January 2019 or when the two sides reach agreement on an acquisition.