Would you listen if a company selling its stock asked you to reject a buyer’s offer?
That’s the conundrum facing stockholders of American Finance Trust, Inc. (NASDAQ: AFIN.) This REIT was formerly not traded, and sponsored by AR Global. The company has 75% of its Class A and former Class B-1 shares, 400,000, on the NASDAQ. The remaining Class B-2 shares are expected to be listed in January 2019.
McKenzie Realty Capital Inc. made, for the second time, an unsolicited tender offer to purchase up to 400,000 shares of each class of the company’s common stock. AFIN’s board is urging stockholders to reject McKenzie’s offer. However, both sides offer reasons for their recommendation.