Ademi LLP is investigating European Wax Center (NASDAQ: EWCZ) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with Searchlight Capital Partners and Abry Partners.
In the transaction, European Wax Center stockholders will receive $5.80 per share in cash for each share of European Wax Center class A common stock they own, in an all-cash transaction with an implied equity value of approximately $330 million. European Wax Center insiders will receive substantial benefits as part of change of control arrangements.
The transaction agreement unreasonably limits competing transactions for European Wax Center by imposing a significant penalty if European Wax Center accepts a competing bid. We are investigating the conduct of the European Wax Center board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.
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