MacKenzie’s offer is for $7.39 per share and it expires on May 3, 2019.
PECO says the $7.39 offer is 34% below the current estimated value per share of $11.05.
PECO’s chairman of the board, Jeffrey Edison, sent a letter to stockholders advising them against taking the offer from MacKenzie.
“Stockholders who tender their shares will give up the opportunity to participate in any potential future benefits from their ownership of PECO stock, and we believe that the bidder’s offer price is substantially below the value of your shares. The board unanimously recommends that you reject this unsolicited offer.”
Edison continued,
“We believe that MacKenzie’s offer is meant to take advantage of the current illiquidity of our shares by offering to buy your shares at a price significantly below their fair value in order to make a significant profit for MacKenzie. According to MacKenzie’s website, its “core strategy” is to purchase securities “at significant discounts to estimated net asset value” and “invest at prices we estimate to be significantly below current market value of the underlying asset.”
MacKenzie already owns 430,200 shares of PECO.
Phillips Edison & Company is an owner, operator, and developer of grocery store-anchored shopping centers. The company has a $4 billion portfolio with 24.4 million square feet across 340 shopping centers. Investors were primarily sold Phillips Edison at $15 a share. Accordingly, both Phillips Edison and MacKenzie are valuing Phillips Edison at substantially below its offering price.
If you were sold Phillips Edison & Company and have questions about your legal rights, contact Scott Silver of the Silver Law Group. Silver Law Group represents the interests of investors who have been the victims of investment fraud. We can be reached toll free at (800) 975-4345.