Robbins Arroyo LLP: Acquisition of Inland Real Estate Corp. (IRC) by DRA Advisors LLC May Not Be in Shareholders' Best Intere...
December 15 2015 - 4:50PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Inland Real Estate
Corporation (NYSE: IRC) by DRA Advisors LLC. On December 15, 2015,
the two companies announced the signing of a definitive merger
agreement pursuant to which DRA will acquire Inland Real Estate.
Under the terms of the agreement, Inland Real Estate shareholders
will receive $10.60 in cash for each share of Inland Real Estate
common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/inland-real-estate-corp
Is the Proposed Acquisition Best for Inland Real Estate and
Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Inland Real Estate is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $10.60 merger consideration represents
a premium of only 5.1% based on Inland Real Estate's one-week
average closing price. This premium is significantly below the
average one-week premium of nearly 16.5% for comparable
transactions within the past five years. Further, the $10.60 merger
consideration is significantly below the target price of $12.00 set
by an analyst at KeyBanc Capital Markets on September 11, 2014. In
the last three years, Inland Real Estate traded as high as $12.05
on May 22, 2013, and most recently traded above the merger
consideration – at $10.67 – on May 8, 2015.
On November 5, 2015, Inland Real Estate reported strong earnings
results for its third quarter 2015. Net income attributable to
common stockholders for the quarter was $8.3 million, an increase
of 254% compared to the same period last year. Recurring Funds from
Operations per share was $0.25 for the quarter, an increase of 4.2%
compared to the same period last year. Additionally, Inland Real
Estate has beat consensus analyst estimates for adjusted EPS,
adjusted net income, and sales in three out of its past four
quarters. In commenting on these results, Inland Real Estate
President and Chief Executive Officer Mark Zalatoris remarked, "For
the quarter we reported an increase of 4.2% in Recurring FFO per
share, as well as another quarter of robust leasing activity in the
total portfolio with very strong rent spreads on both new and
renewal leases."
In light of these facts, Robbins Arroyo LLP is examining Inland
Real Estate's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
Inland Real Estate shareholders have the option to file a class
action lawsuit to ensure the board of directors obtains the best
possible price for shareholders and the disclosure of material
information. Inland Real Estate shareholders interested in
information about their rights and potential remedies can contact
attorney Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, or via the shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20151215006857/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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