Campus Crest Communities Inc.
Robbins Arroyo LLP: Acquisition of Campus Crest Communities, Inc. (CCG) by Harrison Street Real Estate Capital, LLC May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Campus Crest Communities, Inc. (NYSE: CCG) by Harrison Street Real Estate Capital LLC (Private). On October 17, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Harrison Street will acquire Campus Crest. Under the terms of the agreement, Campus Crest shareholders will receive $7.03 for each share of Campus Crest common stock, consisting of $6.90 in cash and a contingent consideration of $0.13, which is the net sale proceeds currently estimated from the separate sale of the Campus Crest’s ownership interest in its evo Montreal joint venture.
Is the Proposed Acquisition Best for Campus Crest and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Campus Crest is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
The $7.03 merger consideration is significantly below the target price of $8.00 set by an analyst at Wunderlich Securities on September 29, 2015. In the last three years, Campus Crest traded as high as $14.36 on April 9, 2013, and most recently traded above the merger consideration – at $7.06 – on April 8, 2015.
On September 29, 2015, Campus Crest reported strong earnings results for its second quarter 2015. Total revenues for the quarter were $45.7 million, an increase of 83% compared to the second quarter of 2014. In commenting on these results, Campus Crest Interim Chief Executive Officer David Coles remarked, “We have successfully concluded the pre-leasing for the 2015/2016 academic year with the total portfolio ending up 320 basis points over the 2014/2015 leasing results. The portfolio effective rental rates increased over 200 basis points.”
In light of these facts, Robbins Arroyo LLP is examining Campus Crest’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.
Campus Crest 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.
Campus Crest 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.