This press release from Globe Newswire indicates that the StoneMor, Inc. has received a “Going Private” proposal from Axar Capital as of May 24, 2020.
In the proposal, Axar Capital Management, which is an approximately 52% owner of StoneMor, Inc., has proposed paying $0.67 per share to purchase all of the outstanding shares of the company’s stock that it does not presently own.
This is an interesting development. But, one that is not totally unforeseen as Axar has, from time to time, been purchasing StoneMor stock and was also involved in moving the company from a Limited Partnership to a stock ownership company.
Those in the funeral industry know that StoneMor has had its share of financial problems over the last several years and for the better part of three years has been working on a plan, which has included divestitures of certain assets, to re-invigorate the company. Their latest quarterly financial report seemed to show more positive news than had been shown in the past.
According to the press release, StoneMor, Inc. owns and operates 319 cemeteries and 88 funeral homes in the United States and Puerto Rico.
Funeral Director Daily will keep you up to date on these developments.