Rite Aid 2016 Annual Report Download - page 103

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014
(In thousands, except per share amounts)
3. Pending Merger (Continued)
Antitrust Improvements Act of 1976, as amended, (ii) the absence of any law or order prohibiting the
Merger, and (iii) the absence of a material adverse effect on Rite Aid, as defined in the Merger
Agreement. Under the terms of the Merger Agreement, at the effective time of the Merger, each share
of Rite Aid’s common stock, par value $1.00 per share, issued and outstanding immediately prior to the
effective time (other than shares owned by (i) WBA, Victoria Merger Sub or Rite Aid (which will be
cancelled), (ii) stockholders who have properly exercised and perfected appraisal rights under Delaware
law, or (iii) any direct or indirect 100 percent owned subsidiary of Rite Aid or WBA (which will be
converted into shares of common stock of the surviving corporation)) will be converted into the right to
receive $9.00 per share in cash, without interest.
Rite Aid and WBA and Victoria Merger Sub have each made customary representations,
warranties and covenants in the Merger Agreement, including, among other things, that (i) Rite Aid
and its subsidiaries will continue to conduct our business in the ordinary course consistent with past
practice between the execution of the Merger Agreement and the closing of the Merger and (ii) Rite
Aid will not solicit proposals relating to alternative transactions to the Merger or engage in discussions
or negotiations with respect thereto, subject to certain exceptions. Additionally, the Merger Agreement
limits the Company’s ability to incur indebtedness for borrowed money and issue additional capital
stock, among other things. The Company currently anticipates that the Merger will close in the second
half of calendar 2016.
4. Income Per Share
Basic income per share is computed by dividing income available to common stockholders by the
weighted average number of shares of common stock outstanding for the period. Diluted income per
share reflects the potential dilution that could occur if securities or other contracts to issue common
103