Paperwork finalizing the $26 million deal to merge Grove Farm Co. Inc. with two businesses headed by America Online chairman Steve Case has been filed with the state Bureau of Conveyances. The filing is required to complete the deal, which
Paperwork finalizing the $26 million deal to merge Grove Farm Co. Inc. with two businesses headed by America Online chairman Steve Case has been filed with the state Bureau of Conveyances.
The filing is required to complete the deal, which also needs state Public Utilities Commission approval. The commission sign-off is required because one of the assets of Grove Farm is Puhi Sewer and Water, operator of a sewage treatment plant falling under commission regulatory authority, explained Allan A. Smith, Grove Farm vice president.
Last month, Grove Farm shareholders overwhelmingly approved the merger, which will see Grove Farm as the surviving entity but with the Case family companies representatives comprising the Grove Farm board of directors.
Also last month, Honolulu attorney Dan Case, Steve Case’s father, said all eight current full-time employees of Grove Farm would be welcome to continue in their present positions if they are willing.
Hugh Klebahn, Grove Farm president, has agreed to stay on through the transition period, but has been noncommittal about his post-transition plans.
The younger Case, founder of AOL, has made no plans for his new Kaua`i holdings, other than to commit nearly $15 million for improvements of Kukui Grove Center and Grove Farm water systems, according to Dan Case.
Heading toward a court date is a lawsuit filed by Grove Farm shareholder Mike Sheehan of Hanalei, who’s seeking to block the sale. Sheehan is arguing that shares in the company are worth more in the neighborhood of $200 apiece than the $152 offered by Steve Case’s companies and accepted by about 90 percent of the Grove Farm shareholders.
Research done by independent appraisers placed the value of one share of Grove Farm stock at between $86 and $98 in April last year, though individual shares sold for as much as $125 between 1986 and 1995.
The lawsuit is not expected to delay finalizing the sale, Dan Case said.
Steve Case’s companies that are taking over Grove Farm handle his family and personal investments. Staff Writer Paul C. Curtis can be reached at pcurtis@pulitzer.net or 245-3681 (ext. 224).
