Florida East Coast Industries' shareholders approve going-private transaction with Fortress affiliates

By Lisa Kerner

Charlotte, N.C., July 25 - Florida East Coast Industries, Inc. shareholders voted to approve the acquisition of the company by affiliates of Fortress Investment Group LLC at a special meeting held on Tuesday.

More than 98.8% of the total shares that voted were in favor of the transaction, a company news release stated.

Under the May 8 merger agreement, Florida East Coast shareholders will receive $62.50 per share in cash. The board of directors also declared a one-time, special cash dividend of $21.50 per share on all issued and outstanding common stock, payable Wednesday.

The transaction, valued at about $3.5 billion including debt, is slated to close on or about Thursday.

As previously reported, Morgan Stanley acted as financial adviser to Florida East Coast and provided a fairness opinion to the board. Greenberg Traurig, PA acted as legal adviser to the Jacksonville, Fla., real estate company.

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