Robbins Arroyo LLP: Acquisition of AmREIT Inc. (AMRE) by Edens Investment Trust May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of AmREIT Inc. (NYSE: AMRE) by Edens Investment Trust, a private company. On October 31, 2014, AmREIT announced the signing of a definitive merger agreement pursuant to which Edens will acquire all the outstanding shares of AmREIT for $26.55 per share in cash.
Is the Proposed Acquisition Best for AmREIT and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at AmREIT is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the proposed consideration represents a premium of 6.8% based on AmREIT’s closing price on October 30, 2014. This premium is significantly below the average one-day premium of nearly 13% for comparable transactions within the past three year. Further, on November 5, 2014, AmREIT released its third quarter 2014 earnings, reporting a strong increase in core funds from operations. Specifically, AmREIT reported the Core FFO available to common stockholders increased 11.1% from $4.5 million or $0.24 per share from the year prior to $5 million or $0.26.
In light of these facts, Robbins Arroyo LLP is examining AmREIT’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.
AmREIT 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.
AmREIT shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.