Comrit Investments has launched a mini tender offer for shares of Cole Office & Industrial REIT, but the REIT’s board of directors has recommended shareholders do not take the offer.
Cole Office & Industrial REIT has approved an estimated per share net asset value (NAV) of the company’s stock of $9.92 as of March 31. Comrit’s offer of $7.01 per share is 29 percent less than that. The board believes the offer price is significantly below the current and potential long-term value of the shares, and is an opportunistic attempt by Comrit to purchase investors’ shares at a deeply discounted price.
According to Cole Office & Industrial REIT, Comrit’s strategy is to capitalize on COVID-19 fears and buy shares at a significant discount. Comrit has acknowledged that the offer is being made with “the intention of making a profit” and that the offer price was established as the lowest price that might be acceptable to the company’s shareholders, consis
