Dividend Capital Diversified Property Fund's board of directors recommended that its shareholders reject a bid by an affiliate of MacKenzie Capital Management LP for up to 8.2 million shares of Class E common stock.
Coastal Realty Business Trust, the MacKenzie affiliate, made a tender offer in April of $3.65 per share in cash. The shares are valued at $7.29 each as of May 1, according to Diversity Property Fund's website. DPF (Nasdaq: ZDPFIX) is a Denver-based real estate investment trust.
The offer represents about 5 percent of DPF's outstanding Class E shares of common stock.
The offer is not in the best interests of the stockholders because the offer price is too low, the board said in a filing with theSecurities and Exchange Commission.
"Given the offer price, the board believes that the offer represents an opportunistic attempt by the offerors to purchase shares at a low price and make a profit and, as a result, deprive the stockholders who tender shares in the offer of the full current value of the shares as well as the potential opportunity to realize the full long-term value of their investment in the company," the board said in its filing.
The offer expires June 4.
Last week, DPF announced that it had purchased a $68 million office portfolio in Texas, the latest in a spate of activity for the fund in recent months.
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