Land and Buildings Comments on Ashford’s Offer to Acquire FelCor Lodging Trust
27 Fevereiro 2017 - 11:00AM
Business Wire
- Believes Ashford’s offer for FelCor is
woefully inadequate –
- Pleased that the Transaction Committee
established by the FelCor board is reviewing the Ashford offer to
maximize value for all FelCor shareholders rather than accept
Ashford’s woefully inadequate offer –
- Land and Buildings has estimated FelCor’s net
asset value at $10.50 per share –
- Strongly believes that any offer by Ashford
should consist of at least the nearly $5 per share of cash balances
at Ashford –
- A full cash offer could be made considering
the likely proceeds from the asset sales being marketed –
Land and Buildings Investment Management, LLC ("Land and
Buildings") today issued the following letter to the shareholders
of FelCor Lodging Trust (NYSE: FCH) (“FelCor” or the "Company”)
regarding the offer by Ashford Hospitality Trust (NYSE: AHT) to
acquire the Company:
Dear fellow FelCor shareholders:
Land and Buildings owns 6.1% of FelCor’s (NYSE: FCH) common
stock. We believe Ashford Hospitality Trust’s (NYSE: AHT) offer
announced last week for FelCor is woefully inadequate. As a
reference point, in our January 28, 2016 public FelCor presentation
we estimated FelCor’s net asset value at $10.50 per share.
Given the substantial cash at both AHT and Ashford Inc. (NYSE:
AINC), the external manager of AHT, totaling approximately $640
million, or nearly $5 per FelCor share1, we are struggling to
understand why any offer did not include a substantial cash
component of at least the cash on hand. We would also note that a
full cash offer could be made considering the likely proceeds from
the assets being marketed at both companies.
Furthermore, the Ashford offer assigns no value to the perpetual
management contract the FelCor assets would be encumbered with
after the merger, which is likely worth in excess of $300 million,
or more than $2 per FelCor share.
Rather than accept Ashford’s woefully inadequate offer that
undervalues the Company, we are pleased that the Transaction
Committee established by the FelCor board is reviewing the Ashford
offer to maximize value for all FelCor shareholders.
Sincerely,
Jonathan Litt
Founder & CIO
Land and Buildings Investment Management, LLC
About Land and Buildings:
Land and Buildings is a registered investment manager
specializing in publicly traded real estate and real estate related
securities. Land and Buildings seeks to deliver attractive risk
adjusted returns by opportunistically investing in securities of
global real estate and real estate related companies, leveraging
its investment professionals' deep experience, research expertise
and industry relationships.
1 Based on December 31, 2016 cash, cash equivalent, restricted
cash and marketable securities balances.
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version on businesswire.com: http://www.businesswire.com/news/home/20170227005763/en/
Media:Sloane & CompanyDan Zacchei / Joe Germani,
212-486-9500Dzacchei@sloanepr.com / Jgermani@sloanepr.com
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