Columbia Property Trust filed a question and answer this morning on its $300 million modified "Dutch Tender" offer that is planned as part of its listing. Included in the Q&A was pricing for the tender (copied directly below):
At what price will Columbia purchase common shares in the tender offer?
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A7.
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The
tender offer will be structured as a modified “Dutch Auction,” with the
minimum price of $22.00 per share and the maximum price of $25.00 per
share, in $0.50 increments, such as:
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Columbia’s
purchase price under the tender offer will be the lowest price per
common share from within this range at which common shares have been
properly tendered and not withdrawn, which will enable Columbia to
purchase the maximum number of common shares having an aggregate
purchase price not exceeding $300 million.
All recent Dutch Auctions - American Realty Capital Trust, Cole Real Estate Investments and Chambers Street - have accepted tendered shares at the lowest offer price. I am too surprised to comment further on this pricing.
8 comments:
Wasn't their last valuation under $10.00 per share? Isn't this crazy pricing they are asking for?
You need to adjust the tender prices for the 1-for-4 reverse split in August
This is going to be a bloodbath.
$22 is 55% of original investment.
If I remember correctly, they were processing ordinary redemptions at $6.25 per share until the SRP was suspended at the end of July to prepare for the listing.
So unless they do the max tender offer price of $25 (yeah, right), shareholders would have been better of redeeming out at the 15%ish discount to NAV at any point over the past year or so instead of holding out for the liquidity event. That’s bound to sting a little…
I've been a shareholder with Columbia since 2005 and feel like I allowed them to steal my money. My financial advisor is disappointed too and has advised me to sell ASAP. Not sure if I should give these thieves more time or sell.
what would the price be today without the support from the dutch auction tender offer?
Management screwed up the IPO price 2 ways.
1. IPO price should have been equivalent to the last appraisal price adjusted for a reverse split.
2. They approved a 1 for 4 reverse split which hurt the shareholders by a false inflation to the value of the stock. Then offered the stock at a huge discount to the last appraisal price and the original buy in price.
Obviously incompetent management when it comes to IPOs.
Management reason for doing a 1 for 4 reverse split was bogus. If a RS was considered, it should have been 1 for 2. RS did not help investors or IPO.
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