Ahha! Chobani says FU to NY moves to ...

Ahha! Chobani says FU to NY moves to Delaware!

Posted in the Utica Forum

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Far less taxes

United States

#1 May 13, 2014
New York’s dairy king has moved to Delaware.

Chobani, the top-selling Greek yogurt brand founded by Turkish immigrant Hamdi Ulukaya, quietly relocated its corporation from New York to Delaware last month, state records show.

The move — which comes just as Albany seeks to make yogurt the state’s official snack — is more evidence that the company headquartered in Norwich, NY, is preparing to go public.

More than 50 percent of publicly traded companies, including 64 percent of Fortune 500 companies, are incorporated in Delaware, which is known for its corporate-friendly laws.

Plus, Chobani scored a $750 million loan from private equity firm TPG last month.

The Delaware move combined with the loan offer “the clearest proof that rumors of an eventual Chobani IPO are no longer rumors,” said Sam Hamadeh, founder and CEO of research firm PrivCo.

“The biggest yogurt IPO is now imminent.”

Last month, Chobani denied reports that it was gearing up for an IPO anytime soon as it explored options for raising capital.

Ulukaya is taking a big risk in getting to his IPO goal by putting Chobani’s trademarks up as collateral against the megamillions, PrivCo’s research shows. TPG will own the company’s most important asset, its brand, if Chobani bungles its expansion plan and defaults on the massive debt.

TPG wins a smaller equity stake, in the range of 20 percent, if Chobani grows its revenues rapidly enough to IPO next year, sources said. The PE firm wins a bigger stake, north of 30 percent, if growth is slower than expected, Hamadeh said.

“It’s a gamble, certainly,” said Hamadeh, noting that Chobani is currently profitable but cash flow negative due to its costly expansion plans.“But Chobani’s CEO has already demonstrated that he’s not shy about making very big, risky bets.”

One person who’s unhappy about the recent changes is Ulukaya’s ex-wife, Ayse Giray, who is suing for a stake in the company.

Giray has filed papers in New York state court seeking more information about the loan and the move to Delaware amid fears that a default will leave her empty-handed.

“We believe that this presents a situation where Dr. Giray’s alleged shareholder interest can be wiped out before trial,” her lawyers wrote in a recent memo about the potential for Chobani to default.

Giray’s fear that TPG’s loan will “bankrupt the company is as ridiculous as is it baseless,” said a Chobani spokesman.“Chobani became a Delaware limited liability company to permit greater flexibility in operating and growing its business.”

Giray is fighting for a 53 percent stake based on a $500,000 investment in Euphrates, Chobani’s predecessor company.

TPG declined to comment, as did Giray’s lawyer, Richard Feldman.

Experts said Delware LLCs are famous for providing owners greater protections against creditors.

“A lot of companies want to be in Delaware because it’s very favorable to corporations and to management,” said Micah Bloomfield, a tax lawyer in New York.“If you have shareholders you want to squeeze out, it’s easier to do that.”
umm

Herkimer, NY

#3 May 14, 2014
So what? You can cut and paste. This is old news.
How

United States

#4 May 14, 2014
umm wrote:
So what? You can cut and paste. This is old news.
How is it old news it was in the New York Post and NY news today moron? Duuuuuuuuuuh.
Smart

Odessa, FL

#6 May 14, 2014
Why would any Company do business in NY? Nano coming yeah right!!! What a façade. The local politicians and Governor are leading the dumb morons of the area. They aren't dealing with the smartest people of the bunch. I don't think many people in CNY are educated.
At times, I think my 12 yr old son would understand why companies aren't moving to CNY over those dumb morons up there!! Good Luck CNYers!
But but but

United States

#7 May 14, 2014
But super nano nano nano is coming and they play welfare hockey at the big big big dome dome!
Stage Coach

United States

#8 May 14, 2014
I said the same thing to Buffalo when I moved to Utica.
Going going

United States

#9 May 14, 2014
All that money going to Delaware now. Way to go NY!

Let

Since: May 14

Ilion

#10 May 14, 2014
Cuomo says anyone who is pro-choice or pro-gun is not welcome in New York. He needs to add anyone who is pro-profit is also not welcome
This is next

United States

#11 May 14, 2014
Next they are building a new plant in Virginia.
intheknow

Malone, NY

#12 May 14, 2014
Hanna loses another business vote the bum out
Cackling Uticans

United States

#13 May 14, 2014
Cuomo and Brindisi are the big Chobani supporters Hanna is a congressman NY death tax isn't his doing.
ron

Utica, NY

#15 May 14, 2014
Right, cuz Delaware is famous for its dairy industry.

Since: May 14

Ilion

#16 May 14, 2014
Delaware has no state income tax, let's all move there and screw Cuomo. We'd see how much he loves his state then.
Shuddup peanuts

United States

#18 May 14, 2014
Shuddup and enjoy your stewarts and welfare hockey peanuts!
Bodes bad for NY

United States

#19 May 15, 2014
And these fools think more businesses and large companies are going to move to the prison-job economy and deal with the sports-entertainment obsessed fools?
Welfare hockey

United States

#21 May 15, 2014
Not surprised you didn't follow along.

Another genius that needs a bouncing ball!

Utica Lies and Riggies

Since: May 14

Clifton Park, NY

#22 May 15, 2014
uc comets fan wrote:
<quoted text> what are you talking about... Stewarts is based in Albany.....
Saratoga and balston spa actually.
Remington next

United States

#23 May 15, 2014
And HOW MANY millions did Albany phonies Brindisi Griffo and Cuomo give this company?
Ilion For Sale

Herkimer, NY

#24 May 16, 2014
The valley people thought last years flood was bad now it will be a flood of houses for sale. Way to go Albany.
Duh

Little Falls, NY

#25 May 16, 2014
farmer brown wrote:
The plant is not moving.. All it is doing is paperwork in Delaware.
Once he incorporates in Delaware and the official corporate headquarters is located in Delaware, it's a game changer. Or do you not understand what the next step is?

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