NEW YORK ― Restaurant chain operator Nathan’s Famous Inc. said it will buy back about 10 percent of its outstanding stock for a maximum price of $11 million.
Nathan’s shareholders can tender their shares at a price range of $20-$22 per share under the Dutch action. The company’s stock closed at $19.08 on Monday on Nasdaq.
Nathan’s Famous, known for its beef frankfurters, said the offer will start on Dec. 8.
The offer is expected to expire at midnight on Jan. 12 and the company can buy up to an additional 2 percent shares under the offer. It has 4.95 million shares outstanding.
Nathan’s, which started as a nickel hot dog stand in Coney Island, N.Y., in 1916, intends to fund the purchase with cash on hand, it said in a statement.