CARLSBAD Calif. Rubio’s Restaurants Inc. has rejected the proposed $49.75 million buyout offer from investor Kelly Capital Investments LLC because the bid “significantly undervalues [Rubio’s] core business and operating plan,” the restaurant operator said Wednesday.
Kelly Capital last week offered $5 per share for all of Rubio’s outstanding stock in a deal that was still subject to financing. Rubio’s operates or franchise more than 180 Rubio’s Fresh Mexican Grill restaurants. Its market capitalization is $39.8 million and its enterprise value — defined as market cap plus debt minus cash and short-term investments — totals $41.4 million, according to data provided by Capital IQ, as noted on Yahoo Finance.
The per-share offer price was a 26-percent premium to Rubio’s stock closing price of $3.97 on Oct. 15, the day before the offer was made. Since then, however, Rubio’s stock price rose nearly 8 percent to close at $4.28 on Oct. 17, when the company announced its third-quarter results would top Wall Street expectations. This week, Rubio’s stock price has traded between $4.30 per share and $4.76 per share. Its 52-week price range is between $3.50 per share and $10.99 per share.
Kelly Capital, a San Diego-based private-equity firm, owns about 5.9 percent of Rubio’s 9.95 million outstanding shares.