Naugles Inc., the Orange-based fast-food chain, became a wholly owned subsidiary of Collins Foods International Inc. on Thursday when shareholders at a special meeting approved the transfer to Collins of the final 8% of Naugles' common stock the Los Angeles-based restaurant operator did not already own.
The stock swap was valued at $11.4 million based on Collins' closing price Thursday of $22.25 on the New York Stock Exchange. Collins has owned 92% of the shares, including 2.22 million shares of common stock and all 23 million shares of preferred stock.
Collins will exchange $5.12 worth of its common stock for each of the 2.2 million shares of Naugles' common stock outstanding--a premium to Naugles' shareholders of about 24% above the current trading price, said Christopher R. Thomas, vice president of finance at Naugles.
Naugles, which went public in October, 1981, operates 171 outlets in four states. It reported net earnings of $1.8 million for its fiscal 1987 second quarter.