Lightstone Value Plus REIT V Commences Self Tender Offer at $7.75 per Share
December 16, 2019
On December 13, 2019, the board of directors of Lightstone Value Plus Real Estate Investment Trust V, Inc. (the “Company”) approved a self-tender offer (the “Lightstone Offer”) to commence on or about December 16, 2019, for up to 2 million shares at a price of $7.75 per share, or approximately $15.5 million of shares. Unless extended or withdrawn, the Lightstone Offer will expire at midnight Eastern Time on or about Friday, January 17, 2020.
The Company is conducting the Lightstone Offer in order to make liquidity available to stockholders in excess of that permitted under the share redemption program (the “SRP”), as well as to deter Everest REIT Investors I, LLC, a third party that is currently conducting a tender offer for shares of the Company’s common stock, and other potential future bidders that may try to exploit the illiquidity of the shares of the Company’s common stock and acquire them from stockholders at prices substantially below their fair value.
In connection with its approval of the Lightstone Offer, on December 13, 2019, the Company’s board of directors approved the suspension of the SRP effective immediately. Pursuant to the terms of the SRP, while the SRP is suspended, the Company will not accept any requests for redemption and any such requests and all pending requests will not be honored or retained, but will be returned to the requestor.
The Board of Directors will continue to consider the liquidity available to stockholders going forward, balanced with other long-term interests of the stockholders and the Company. It is possible that in the future additional liquidity will be made available by the Company through the SRP, issuer tender offers or other methods, though we the Board can make no assurances as to whether that will happen, or the timing or terms of any such liquidity.
The Lightstone Offer will be further described in the offer to purchase and letter of transmittal filed with Securities and Exchange Commission (the “SEC”). The full details of the Lightstone Offer, including complete instructions on how to tender shares, will be included in the offer to purchase, the letter of transmittal and other related materials, which the Company will make available to stockholders and file with the SEC upon commencement of the Lightstone Offer.
Source: SEC
