Sentio Healthcare Properties, a publicly registered non-traded real estate investment trust, announced that its board of directors unanimously determined that the tender offer made by Mackenzie Realty Capital is not in the best interests of Sentio or its stockholders.
As reported by The DI Wire earlier this month, MacKenzie Realty Capital Inc., a non-traded business development company, made a tender offer for 600,000 shares of Sentio common stock for $5.00 per share. The offer expires on March 18, 2016.
Accordingly, Sentio’s board of directors unanimously recommended that stockholders reject the tender offer. The company’s most recent valuation, declared in February 2014, estimated that their stock was worth $11.63 per share.
The board believes that the offer price is significantly less than the current and potential value of the shares, and “represents an opportunistic attempt…to make a profit by purchasing the shares at a very low price relative to their current estimated value…”
At this time, MacKenzie does not own any interest in the REIT and would pay $3 million if all 600,000 shares are tendered. The tender offer equals 5.22 percent of the outstanding shares.