Sherwood Investments bids $217 million for Trans World Entertainment

By Lisa Kerner

Charlotte, N.C., Nov. 29 - Sherwood Investments Overseas Ltd. proposed a $7-per-share buyout of Trans World Entertainment Corp. in a letter to the company's board of directors.

Sherwood owns some 1.54 million shares, or 4.95%, of Trans World's common stock.

Sherwood has not yet agreed to terms of a confidentiality agreement with the company, according to the letter. The letter was included in a Sherwood news release.

The offer is subject to financing and the execution of a mutually acceptable purchase agreement. Sherwood said the offer may increase following due diligence.

It was previously reported in early November that Trans World chairman, chief executive officer and largest Trans World shareholder Robert J. Higgins offered to buy the company's remaining shares for $5 cash per share in a binding proposal.

Higgins and his related entities currently hold approximately 40% of the company's issued and outstanding shares, according to a company news release.

The special committee of Trans World's board of directors said it will review the proposal with the assistance of Goldman, Sachs & Co.

Based in Albany, N.Y., Trans World is a specialty retailer of entertainment software, including music, home video and video games. The company operates more than 950 retail stores.

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