Robbins Arroyo LLP: Acquisition of American Capital, Ltd. (ACAS) by Ares Capital Corp. (ARCC) May Not Be in Shareholders' Bes...
May 23 2016 - 3:39PM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of American Capital, Ltd.
(NASDAQ: ACAS) by Ares Capital Corp. (NASDAQ: ARCC). On May 23,
2016, the two companies announced the signing of a definitive
merger agreement pursuant to which Ares Capital will acquire
American Capital. Under the terms of the agreement, American
Capital shareholders will receive $8.86 in cash and 0.483 shares of
Ares Capital for each share of American Capital they own, the value
of which is equivalent to $17.40 per share of American Capital.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/american-capital-ltd-may-2016
Is the Proposed Acquisition Best for American Capital and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at American Capital is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $17.40 merger consideration represents
a premium of only 21.6% based on American Capital's last unaffected
closing price on November 13, 2015. This premium is below the
average one-day premium of nearly 29% for comparable transactions
within the past five years. Further, the $17.40 merger
consideration is significantly below the target price of $18.00 set
by analysts at Sterne Agee CRT on February 22, 2016, J.P. Morgan on
May 10, 2016, and Compass Point Research & Trading LLC on
December 8, 2015.
On May 6, 2016, American Capital reported strong earnings
results for its first quarter 2016. Total operating revenue for the
quarter was $162 million, an increase of 5.2% compared to the same
period last year. Net operating income for the quarter was $74
million, an increase of 48% compared to the same period last year.
Additionally, American Capital has beat consensus analyst estimates
for revenue in each of the last seven quarters, and has beat
consensus analyst estimates for adjusted EPS and adjusted net
income in three out of the past four quarters.
In light of these facts, Robbins Arroyo LLP is examining
American Capital'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.
American Capital 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. American Capital shareholders interested in
information about their rights and potential remedies can contact
attorney Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, or via the shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160523006395/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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