New York investment firm Bow Street on Tuesday sent a letter to Mack-Cali’s board of directors reiterating its proposal to acquire the company’s office portfolio and highlighting the need for a reconstituted board that is willing to seriously explore all solutions to maximize stockholder value.
Under the terms of Bow Street’s proposal, Mack-Cali stockholders will receive expected net cash consideration of $8 – $10 per Mack-Cali share as well as an equity distribution of a new, high-growth apartment REIT, comprised of Mack-Cali’s current multifamily portfolio with a calculated net asset value of $19.20 per share.
As detailed in its letter, Bow Street’s proposal from Feb. 25, 2019, was hastily and publicly rejected prior to any meaningful inquiry from the real estate company regarding valuation, structure, tax or other implications for stockholders.
Bow Street said it strongly believes that the board’s perfunctory response suggests an alarming lack of commitment to good governance and long-term stockholder value, as well as an unwillingness to explore value-maximizing opportunities following years of company underperformance.
Accordingly, Bow Street has nominated four independent director candidates for election to the board at the 2019 Annual Meeting of Stockholders to ensure the board seriously evaluates all solutions that may achieve a superior result for stockholders.