KBS REIT II Recommends Rejection of Tender Offer
August 30, 2017 | James Sprow | Blue Vault
KBS Real Estate Investment Trust II Inc. is urging its stockholders to reject MacKenzie Realty Capital Inc.’s mini-tender offer for up to 2.5 million shares of the company’s common stock.
The bidder is offering to buy the shares at $3.87 apiece, which the company said is substantially lower than the value of the shares, according to a filing. Blue Vault reports the latest NAV per share estimated by KBS REIT II was $5.49 as of December 14, 2016.
The REIT has engaged Evercore Group LLC to act as the REIT’s financial advisor to assist with the process of exploring strategic alternatives, including marketing some of the REIT’s assets and thereafter adopt a plan of liquidation that would involve the sale of the REIT’s remaining assets. The REIT states that it believes the tender offer “is meant to take advantage of the illiquidity of the REIT’s shares by buying shares at a price significantly below their fair value in order to make a significant profit.”
The shares subject to the offer represent about 1.33% of the company’s outstanding shares.
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