Safeway said Monday that it has entered into a settlement agreement with certain shareholders who’d filed suit in connection with Safeway’s merger with AB Acquisitions.
The settlement would make adjustments to how the merger agreement treats contingent value rights (CVR) agreements for Casa Ley and PDC, retail and real estate divisions, respectively, that Safeway contemplates selling in connection with the merger.
The PDC settlement offers fair market value for shopping center holdings remaining unsold at the end of the two-year sale deadline period. The Casa Ley agreement shortens the sale deadline from four years to three years and would provide fair market value for assets of Casa Ley unsold at that time. Casa Ley is a Mexican retailer owned by Safeway.
Safeway also said it would terminate an anti-takeover rights agreement June 19, ahead of a Sept. 15 expiration date.
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