AmREIT Inc., a Houston-based real estate investment trust, said its stockholders should reject an offer from Tender Investors LLC to purchase nearly 1.2 million shares of the company's common stock at $4 per share in cash.
In its statement, the company said its board determined the range in value for its common stock to be between $7.25 and $11.75 per share.
However, this stock does not publicly trade on an exchange. In its letter to shareholders, Tender Investors said its offer would give investors the opportunity to liquidate their investment for cash.
It would also provide AmREIT shareholders the ability to sell without having to prove to the company they have a hardship.
In turn, AmREIT said the offer is "an opportunistic attempt to purchase shares of our common stock at an artificially low price and, as a result, profit from our current lack of trading market."
The company said it is working on "a liquidity event," whether it is an initial public offering with a listing on the New York Stock Exchange or an "institutional recapitalization."
