Albertsons Companies (NYSE:ACI) has cleared the final obstacle in the payment of its previously announced special dividend of $6.85 per common share. The Washington state’s Supreme Court lifted the temporary restraining order by declining to review a lower court’s ruling that allowed the $4 billion dividend payout.
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The company said that it would immediately start the payment of a special dividend to shareholders of record as of October 24, 2022.
The dividend was blocked over concerns that the special payout could make Albertsons financially weaker and that the company could face bankruptcy if the $24.6 billion proposed merger with Kroger (KR) is not successful.
Further, Albertsons updated that the merger continues to be reviewed by the regulators. Last month, the Federal Trade Commission requested additional merger-related information as part of the ongoing review process. The merger is expected to be completed in early 2024.
Is Albertsons Stock a Buy or Sell?
Currently, ACI stock has a Moderate Buy rating based on three Buy and six Hold recommendations. The average stock price target of $26.36 implies 24.3% upside potential from current levels.
