The board of American Finance Trust Inc. (NASDAQ: AFIN), a former non-traded real estate investment trust sponsored by AR Global that has 75 percent of its shares listed on the Nasdaq Global Select Market, is urging company stockholders to reject a recent unsolicited tender offer launched by MacKenzie Realty Capital Inc. to purchase up to 400,000 shares of each class of company common stock. This is MacKenzie’s second tender offer for AFIN shares in recent months.
MacKenzie is offering $15.00 per Class A share and $14.01 per Class B-1 share, and will purchase up to 400,000 shares of each class. The offer expires on November 16, 2018.
In July 2018, MacKenzie offered $15.00 per Class A share, $11.27 per Class B-1 share, and $10.00 per Class B-2 share, and sought to purchase up to 400,000 shares of each class.
Shares of the non-traded REIT originally sold for $25.00 each, and the company terminated its share repurchase program at the end of June prior to listing on Nasdaq.
“We believe that MacKenzie would not be making the offer if it did not think AFIN’s shares will be worth more in the future than the prices they are paying for each share class,” said the company in a statement.
American Finance Trust has listed 75 percent of its Class A and former Class B-1 shares on NASDAQ, and the remaining Class B-2 shares are expected to list by January 2019.
“MacKenzie is a for-profit business that we believe opportunistically timed this offer to commence with the simultaneous conversion of AFIN’s Class B-1 common stock into AFIN’s Class A common stock traded on The Nasdaq Global Select market,” the company added.
AFIN stock closed at $13.90 on Wednesday.
While structured as a non-traded REIT, American Finance Trust’s offering raised more than $1.6 billion in investor equity between April and October 2013. The company’s multi-billion-dollar portfolio consists of 560 single-tenant net lease and multi-tenant retail and lifestyle center properties.