The Nebraska-based chain said the Federal Trade Commission signed off on the deal earlier this week, but banking regulators still haven’t approved one part of the transaction.
Cabela’s shareholders will vote on the deal, which would pay them US$61.50 per share, next Tuesday (a 3% premium on the stock’s closing price on Wednesday).
In addition to selling Cabela’s stores, website and catalog business to Bass Pro, the company plans to sell its credit card unit.
Ultimately, the deal calls for the credit card business to be sold to Capital One. But first, a Georgia-based bank named Synovus will buy the unit as a middleman. Synovus will hold onto the credit card unit’s US$1.2 billion in deposits before reselling it to Capital One.
Late last year, banking regulators had questioned the sale to Capital One because of an unrelated issue with that bank. Regulators haven’t said whether the new arrangement involving Synovus addresses their concerns.
The deal is expected to close later this year.
Full Content: Fox Business
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