Last year, MCB had made proposals to acquire the company, but Whitestone REIT, after considering a revised offer of $15 per share, decided to reject the move.
- Last year, MCB had made proposals to acquire the company, but Whitestone REIT, after considering a revised offer of $15 per share, decided to reject the move.
- MCB said that Whitestone shareholders would receive $15.20 per share in cash, representing a 21% premium to Whitestone’s share price of $12.56 as of November 3.
- MCB said it was the largest actively managed shareholder of Whitestone REI, with ownership of 4.69 million shares representing 9.2% of Whitestone’s common shares.
Whitestone REIT (WSR) received a proposal from MCB Real Estate to acquire all of the outstanding shares of the company for $15.20 per share in cash.
Shares of the company rose over 10% at $13.87 in early trading on Tuesday. Retail sentiment on Whitestone REIT remained unchanged in the ‘neutral’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits.
In an open letter to the Whitestone REIT’s shareholders, MCB said that in the absence of a constructive engagement toward a transaction or the initiation of a public strategic alternatives process, it intends to, at a minimum to vote against the entire Whitestone Board at the next annual meeting of Shareholders, and encourage all shareholders to do the same.
Last year, MCB had made proposals to acquire the company, but Whitestone REIT, after considering a revised offer of $15 per share, decided to reject the move, noting that it does not believe the offer price reflects an appropriate valuation for entering into discussions toward a negotiated transaction.
MCB said it was the largest actively managed shareholder of Whitestone REI, with ownership of 4.69 million shares representing 9.2% of Whitestone’s common shares.
What Is MCB’s Revised Offer?
MCB said that Whitestone shareholders would receive $15.20 per share in cash, representing a 21% premium to Whitestone’s share price of $12.56 as of November 3. MCB noted that its proposal is backed by fully committed equity, along with debt financing supported by Wells Fargo.
The real estate company noted that it was looking towards a “mutually beneficial transaction.
Why Did Whitestone REIT Reject The Previous Proposal?
MCB said that when the Whitestone REIT’s Board of Trustees rejected the prior $15 proposal in October 2024 and refused to even engage, several points were cited that highlighted the “great progress against its strategic objectives.’
This was expected to drive shareholder value, including same-store net operating income growth and core funds from operations per share growth. “However, Whitestone has failed to execute,” MCB said.
The real estate company added that Whitestone has delivered negative total shareholder returns of approximately 6.6% since the board rejected the offer last year.
Shares of Whitestone REIT have declined over 11% this year.
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