KBS REIT III Urges Shareholders to Reject Mini Tender Offer

Posted on March 15th, 2023 at 3:59 PM
KBS REIT III Urges Shareholders to Reject Mini Tender Offer

From the desk of Jim Eccleston at Eccleston Law 

The board of directors for KBS Real Estate Investment Trust III Inc., a publicly registered non-traded real estate investment trust, has urged shareholders in a letter to reject unsolicited mini-tender offers from CMG Income Fund II LLC, CMG Liquidity Fund LLC, Blue River Capital LLC, and CMG Partners LLC.

CMG is offering to purchase 450,000 shares at $4.02 per share, and there currently is no expiration date on the tender offer. However, the offer constitutes a 55% discount as KBS REIT III’s estimated value per share reached $9.00 as of September 2022. According to KBS, CMG noted in their offering letter that they retain the option to resell some or all of the KBS shares they purchase in the offering.

CMG additionally disclosed that they recently sold 15,000 shares of KBS REIT III’s common stock and subsequently purchased 501.54 shares at prices of $6.59 and $5.05 per share in the secondary market. Therefore, KBS contends that the tender offer illustrates CMG’s belief that the shares are worth more than the current offering price.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, epmloyment, regulatory and disciplinary matters. 

 

 

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

The work that you and your team have performed on my behalf is exemplary.

JT

LATEST NEWS AND ARTICLES

December 19, 2024
GPB Capital Investors See Progress as Court Confirms Receivership

In a significant development for investors in GPB Capital Holdings, the private equity firm will move into receivership following a prolonged legal battle.

December 18, 2024
SEC Fines Cantor Fitzgerald $6.75 Million for Misleading SPAC Investors

The Securities and Exchange Commission (SEC) has charged Cantor Fitzgerald, L.P. with causing two special purpose acquisition companies (SPACs) under its control to make misleading statements to investors before their initial public offerings (IPOs). 

December 17, 2024
Former Western Asset Management Co-CIO Charged with Fraud for Cherry-picking Trades

The SEC recently charged Ken Leech, former Co-CIO of Western Asset Management, with fraud.