INDIANAPOLIS — The Steak n Shake Company (S.N.S.) and Western Sizzlin Corporation announced the execution of a non-binding Letter of Intent relating to a proposed merger of Western into a wholly-owned subsidiary of S.N.S.

On or before closing, Western will distribute to its stockholders all of the S.N.S. shares beneficially owned by Western, according to the merger plan. Under the terms, the consideration payable to Western's stockholders will be based on a net transaction valuation of approximately $22,959,000.00. At closing, each share of Western's common stock would be converted into the right to receive an amount equal to approximately $8.11 in the principal amount of debentures issued by S.N.S.

The closing of the transaction is subject to certain conditions, including negotiation and execution of definitive documentation and the satisfactory completion of the parties' due diligence.

Steak n Shake is a holding company and its primary restaurant operation is conducted through Steak n Shake Operations Inc. The Steak n Shake restaurant chain serves premium burgers through its chain of 486 restaurants. Western Sizzlin Corporation is a holding company that owns numerous subsidiaries. Its primary business activities are conducted through Western Sizzlin Franchise Corporation and Western Sizzlin Stores Inc., which franchise and operate restaurants.