Jean Coutu almost out of Rite Aid Corporation (NYSE:RAD)
The Jean Coutu Group has announced an additional reduction in its Rite Aid Corp. (NYSE:RAD) holdings. The former is a Quebec-based operator of over 400 pharmacies located in Eastern Canada. On Wednesday the company said that it had completed selling 40.5M additional common Rite Aid shares. The sale, at $2.75/ share for a net amount of US$110.8M, brought its holdings in the company down to 7.2%.
Previously, the company had written-off its investment in RAD, which it had acquired in 2007 in lieu of it’s of 1,854 Brooks and Eckerd chain drugstores as well as 6 distribution centers. Rite Aid operates over 4,600 drugstores across 31 states and Columbia District. The Jean Coutu Group has 407 franchisee stores in Quebec, Ontario and New Brunswick under the PJC Jean Coutu, PJC Sante, PJC Clinique, and PJC Sante Beaute banners. It also owns a Quebec-based generic drug-maker, Pro Doc Ltd.
What are common shares?
Common shares are shares of a stock that are signify equity ownership in a company. A common stock holder of a company has some basic privileges. The person will have limited voting rights and return will be based on company profitability. In addition to this, the person may also be eligible for some benefit from equity appreciation in securities that are associated with the said company. All the rights as well as privileges that are connected with common stock are included with the other kinds of shares that provide broader privileges and benefits.
In a situation where voting in the operation of a company comes into the picture, typically, common share holders can participate in the election process for company directors. It is not common for these investors to be permitted to nominate candidates for any vacancy among the board of directors. However, the bylaws of certain companies may extend this privilege. Sometimes, investors are able to vote the total number of their shares, though in certain other situations, every investor holding will be permitted just one vote, irrespective of the of the number of shares he/she possesses.