Melcor Real Estate Investment Trust 5 1 Convertible Unsecured Subordinated Debentures T.MR.DB.B

Firm Capital - "take under"

[WEBuffettisbest]

Firm Capital released a good response to the offer from Melcor Developements.

https://www.globenewswire.com/news-release/2024/09/18/2948637/0/en/FC-Private-Equity-Realty-Management-Corp-Responds-to-Melcor-REIT-Take-Under-Transaction.html

[longrun86]

I read this release a few times over. They make some valid points but stop short of putting forward anything of substance that is actionable other than an outright rejection. They are familiar with the assets as they have been a holder and lender in the past. They also have extensive experience in real estate. Their valuation adjustment at the bottom showing the discount to IFRS NAV seems a bit

[CarlM20]

MRD is not already a majority owner ? Cannot bid better for MR-un without having them to agree. The only way, I see, is for FC to gather enough support to negociate a higher MRD offer. If not, vote no. Is there a dissent process to  have courts fix the dissenters final price? Long and costly. I am not an expert, I will wait to see the final outcome. I wrote to FC and no reply. My guess is

[Northforce13]

"Cannot bid better for MR-un without having them to agree." If a third party makes an offer, I think MRD must match or accept (haven't checked but that's quite common) "The only way, I see, is for FC to gather enough support to negociate a higher MRD offer." MRD might say no and walk. The offer is destructive to MRD 's book value/share, not accretive. 

[CarlM20]

Good point. MRD cannot vote on their own offer but will vote on any competing offers by others. And decline it. They do not have to match. That happens on take overs when biding escalation do not involve  a majority owner.  A good , but risky way to force MRD to sweetened its offer would be:  Telsec + FC join in a "substancial bid" for only the stake they are missing to