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MacKenzie Launches Tender Offer for Phillips Edison & Co. Shares

MacKenzie Realty Capital has launched an unsolicited tender offer to purchase up to 2 million shares of Phillips Edison & Company (PECO), a publicly registered non-traded real estate investment trust.

MacKenzie Realty Capital has launched an unsolicited tender offer to purchase up to 2 million shares of Phillips Edison & Company (PECO), a publicly registered non-traded real estate investment trust, for $7.39 each. The offer expires on May 3, 2019.

PECO’s most recent estimated value per share is $11.05 as of March 31, 2018. Shares originally sold for $10.00 each.

In a letter to investors, chairman of the board Jeffrey Edison urged stockholders against selling their shares to 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,” said Edison. “The board unanimously recommends that you reject this unsolicited offer.”

MacKenzie and its affiliates currently own 430,200 PECO shares or 0.15 percent of the outstanding, and if all shares in the latest offer are purchased, MacKenzie will pay nearly $14.8 million.

Phillips Edison & Company, formerly Phillips Edison Grocery Center REIT I Inc., is one of the nation’s largest owners and operators of grocery-anchored shopping centers. The offering was declared effective by the SEC in August 2010 and raised approximately $1.8 billion in investor equity before closing in February 2014, according to Summit Investment Research. The company’s $4 billion portfolio was comprised of 340 shopping centers – 303 of which it owns directly – totaling approximately 24.4 million square feet located in 32 states, as of December 31, 2018.

Based in Moraga, California, MacKenzie has specialized in the area of discounted real estate securities and asset management since its formation in 1982.

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