Rickets Selling Part of Ameritrade to Fund Cubs Purchase

[E.J.]

http://sports.yahoo.com/mlb/news;_ylt=Atf4y7hs666M0H1llD2YP0ARvLYF?slug=ap-cubs-tdameritradeshareholders&prov=ap&type=lgns

 

OMAHA, Neb. (AP)—The family of TD Ameritrade founder Joe Ricketts will sell 34 million of its shares in the online brokerage back to the company to help finance the family’s bid to buy the Chicago Cubs.

 

Ameritrade announced the stock purchase agreement Wednesday morning before its annual shareholder meeting.

 

Ameritrade agreed to pay the Ricketts family $11.85 per share. After the transaction, the Ricketts family stake in the company will shrink from about 22 percent of Ameritrade’s stock to about 17.7 percent.

 

The Ricketts family will control two seats on Ameritrade’s board instead of three after the deal.

 

Ameritrade said the purchase of the Ricketts’ shares will complete its existing planned buyback programs, including the 28 million shares it planned to repurchase as part of its pending acquisition of thinkorswim Group Inc. Ameritrade’s shares fell 16 cents to $12.40 in morning trading Wednesday after the announcement.

 

Last month, the Cubs’ owners at Tribune Co. chose to enter exclusive negotiations with the Ricketts family.

 

“Our family is working to close a deal for the Chicago Cubs, and we are pleased to have reached a mutually beneficial agreement with the company that will help us to do so,” Joe Ricketts said in a statement.

 

The Ricketts family said last month that its winning bid for the Cubs was worth about $900 million, and it would include Wrigley Field and a 25 percent interest in a regional sports network. But the family still must reach a final agreement with Tribune, which filed for bankruptcy protection in December.

 

In addition, a sale must be approved by MLB team owners.

[Cubswin11]

Makes sense considering it has been reported he is putting close to $450 million of his own money into the purchase and then either getting other investors or a loan for the remaining $400+ million.