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STAR-ADVERTISER / 2010
A Horizon Lines container ship was in Honolulu Harbor moored at the Horizon Lines terminal on Sand Island.
Three lawsuits challenging the planned sale of ocean cargo transportation firm Horizon Lines to competitors Matson Inc. and The Pasha Group have led to a settlement agreement that won’t affect the deal’s $598 million purchase price.
North Carolina-based Horizon announced the tentative settlement Friday, and said it is subject to court approval.
One significant change to the planned sale under the settlement agreement is how much Matson would receive under certain circumstances if the deal falls apart. This so-called termination fee will be cut to $9.5 million from $17.2 million.
Shareholders of Horizon stock are slated to vote on the sale Feb. 25.
The deal, announced in November, involves Pasha acquiring Horizon’s Hawaii business $141.5 million while Matson acquires Horizon’s operations in Alaska for $456.1 million. Matson is the largest ocean cargo carrier serving Hawaii.
Three class-action lawsuits filed in Delaware sought to block the sale, alleging that the purchase price was insufficient, that there was misleading or missing information about the deal, and other things.
Horizon said its board regarded the lawsuits, which were consolidated into one case, as having no merit. A settlement, the company said, eliminates risks, costs and other burdens of litigation.
