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Cabela’s Inc. (NYSE: CAB) shareholders today voted in favor of the company’s sale to Springfield-based Bass Pro Shops.SBJ file photo
Cabela’s Inc. (NYSE: CAB) shareholders today voted in favor of the company’s sale to Springfield-based Bass Pro Shops.

SBJ file photo

Cabela’s shareholders approve sale to Bass Pro

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Cabela’s Inc. (NYSE: CAB) shareholders this morning voted to approve the outdoor retailer’s proposed $5 billion sale to Springfield-based Bass Pro Shops.

Stockholders were given one vote for each share they hold in the company during the meeting held at Cabela’s Sidney, Nebraska, headquarters. The final vote results will be filed in a U.S. Securities and Exchange Commission notice. However, local news outlet KNEP reported 78 percent of shareholders favored the buyout.

The transaction received shareholder approval despite several lawsuits being filed against Cabela’s by shareholders who claim the company’s communications in regard to the merger have been misleading and incomplete.

“We are pleased that our combination with Bass Pro Shops has received the overwhelming support of Cabela’s shareholders,” Cabela’s CEO Tommy Millner said in a news release. “Today’s results are an important milestone as we look forward to completing the merger and creating the premier retailer in outdoor sporting goods.”

Top Cabela’s shareholders include:
    •    James Cabela with 16.3 percent;
    •    Cabela’s Family LLC with 6.7 percent;
    •    The Vanguard Group with 5.8 percent;
    •    Blackrock Inc. with 5.4 percent; and
    •    Millner with than 1 less percent.

The agreement includes details about how Cabela’s leadership would be compensated, including Millner, who could net $9.8 million.

Bass Pro, backed by Goldman Sachs Group Inc. and Pamplona Capital Management LLP, is seeking to buy its competitor’s 68.9 million outstanding shares for $61.50 each. Cabela's stock opened today at $59.83 with a 52-week price of $45 to 63.60.

The transaction is expected to close in the third quarter, with essentially one road block left: Cabela’s must sell its financial arm, World’s Foremost Bank, to Synovus Bank, which then plans to sell the division’s credit card assets to Capital One. The Federal Trade Commission gave the green light to the deal last week.

The buyout would make Bass Pro founder Johnny Morris CEO and majority shareholder of the new private entity.

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