SuperValu Inc. announced that two of its directors, Mark Neporent and Lenard Tessler, have stepped down from the board of directors effective March 6.
Neporent and Tessler were both appointed to the board in 2013 as designees of Symphony Investors LLC, a Cerberus Capital Management L.P.-led investor consortium, under the terms of the Tender Offer Agreement entered into with Symphony Investors and Cerberus in connection with SuperValu’s sale of five banners to an affiliate of Symphony Investors.
Symphony Investors owns approximately 20.9 percent of SuperValu’s outstanding common stock. Under the terms of the Tender Offer Agreement, Symphony Investors has the right to designate replacement directors for Neporent and Tessler.
Neporent is the chief operating officer and general counsel for Cerberus Capital Management, and Tessler is the co-head of global private equity and senior managing director. Their resignations followed the announcement of a definitive agreement under which AB Acquisition LLC, an entity controlled by a Cerberus-led investor group, will acquire all outstanding shares of Safeway Inc.
“In light of the transaction announced [March 6], we felt it was in the best interests of SuperValu for us to resign our seats on the SuperValu board," Neporent said in a press release. "The directors who will be designated to replace Lenard and me under the Tender Offer Agreement are expected to be independent of both Cerberus and SuperValu and will add to SuperValu’s outstanding board.”
Commenting on the change in the board, SuperValu’s Non-Executive Chairman Gerald Storch said, “I would like to thank Mark and Lenard for serving on SuperValu's board of directors and for their important contributions during the transition period following the banner sale. We look forward to working with Cerberus to identify two new, highly qualified director designees to replace Mark and Lenard, and who will help to lead our organization into the future.”
“I also would like to thank Mark and Lenard for their service," Sam Duncan, chief executive officer of SuperValu, said in the press release. "As the process moves forward to designate new directors, we are continuing our focus on driving sales and serving all of our customers, including providing services under the Transition Services Agreements with Albertsons LLC and New Albertsons Inc.”
SuperValu’s board currently has nine members, including seven members who are independent directors under the New York Stock Exchange listing standards.