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Investors who purchased shares of Edelman Financial Group Inc (NASDAQ:EF) prior to April 16, 2012 and currently hold any of those NASDAQ:EF shares have certain options and should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
April 16, 2012 (Shareholders Foundation) -- An investigation for investors in NASDAQ:EF shares concerning whether the offer to acquire Edelman Financial Group Inc at $8.85 per share and the buyout process are unfair to investors in Edelman Financial Group Inc (NASDAQ:EF) was announced.
The investigations by law firms concern whether certain officers and directors of Edelman Financial Group Inc breached their fiduciary duties owed to NASDAQ:EF investors in connection with the proposed acquisition.
On Monday, April 16, 2012, The Edelman Financial Group Inc. (NASDAQ: EF), announced that it has entered into a merger agreement with affiliates of Lee Equity Partners, LLC, to be acquired for $8.85 per share in cash.
The Edelman Financial Group said the offer represents a premium of 43% over the Edelman Financial Groups closing price Friday of $6.18, and a premium of 33% over its volume-weighted average closing price over the last 20 trading days.
Following the going private offer, shares of Edelman Financial Group Inc (NASDAQ:EF) jumped from $6.18 on Friday, April 13, 2012 to $8.76 per share on Monday.
However, Members of the Edelman Financial Groups senior management, who currently own approximately 26% of TEFGs outstanding shares, have already agreed to vote their shares in favor of the merger.
Furthermore, Edelman Financial Groups financial performance increased over the past recent years. Edelman Financial Group Inc reported that its annual Revenue rose from $111.26million in 2009 to $169million in 2011 and its Net loss of $5.48million in 2009 turned into a Net Income of $5.496million in 2011.
Therefore the investigation for NASDAQ:EF investors concerns whether the proposed transaction is unfair to Edelman Financial Group stockholders.
Specifically, the investigation focuses on whether the Edelman Financial Group Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
