ST. PAUL, Minn. (AP) -- Gander Mountain Co., which sells hunting and outdoor gear, said Monday it plans to become a private company, sending its shares soaring.
Gander Mountain said that its two largest shareholders, Gratco LLC and Holiday Stationstores Inc., will pay smaller holders of less than 30,000 shares about $5.15 per share, a 35 percent premium to Friday's close of $3.82. Owners of more than 30,000 shares will retain their shares and not be paid for them.The going-private transaction is expected to close in early 2010.
Gander said its directors decided it would be a disadvantage to remain publicly traded on the Nasdaq Global Market, partly due to the costs associated with regulatory requirements.
Outdoor retailers have suffered amid the recession as consumers hold back on big-ticket items such as hunting and fishing gear. Gander Mountain finished withdrawing from the boat, all-terrain-vehicle and power sports services categories during its most recent fiscal second quarter, but it still reported a loss as sales fell 2 percent to $248.4 million.
Gander shares jumped $1.18, or 31 percent, to $5 premarket trading.