Thursday, June 20, 2013

Open Market

Cole Real Estate Investments' (COLE) stock is trading on the NYSE.   Early this morning Cole announced a $250 million Dutch Auction tender offer, where it will purchase properly tendered shares at prices "not greater than $13.00 nor less than $12.25 per share."  The tender offer expires August 8, 2013.  The $250 million tender offer represents approximately 5% of the equity raised in Cole Credit Property Trust III.  Following the completion of the tender offer, COLE has made available additional $250 million to repurchase shares on the open market.

In a June 5, 2013, filing, COLE stated that it expected to have $500 million available to fund a tender offer and a secondary market purchase program to support liquidity in the period following listing.  So, the $500 million is being split between the tender offer and the share repurchase program.

This morning COLE announced that Christopher Cole agreed to waive a $7.5 million equity award.

COLE, in initial trading, is pricing above the $10 per share paid by investors, but less than the tender offer prices. 

4 comments:

  1. Anonymous10:08 AM

    And the stock is also trading well below what ARC offered a couple of months ago. How is this better for the shareholders again???

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  2. Anonymous12:07 PM

    The market is tanking. What do you expect?

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  3. Anonymous12:31 PM

    The cash offer from ARCP didn't cover all Cole shareholders. At least some would still be caught holding the ARCP bag which is well off it's highs.

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  4. Anonymous5:49 AM

    ARCP is well off its high, yet still 10% above the offer of its stock....

    ReplyDelete