Manhattan Bridge Capital Says $1.30-a-Share Buyout Bid ‘Ridiculously Low’
Manhattan Bridge Capital Inc. (LOAN), which lends to investors in New York metropolitan area real estate, received a takeover offer of $1.30 a share, or $5.62 million, a bid the company dismissed as “ridiculously low.”
Investment firms Capstone Equities LLC and G Asset Management made the offer on Dec. 29, a day after Manhattan Bridge Capital shares closed at 90 cents, according to a statement released by Capstone today. The firms said they urged Great Neck, New York-based Manhattan Bridge Capital to hire an investment bank to find a higher offer, be liquidated or both.
“Manhattan Bridge Capital is trading at a material discount to its liquidation value,” Joshua Zamir, a Capstone managing principal, said in the statement. “We believe the best course of action is for the company to be taken private or liquidated,”
Assaf Ran, Manhattan Bridge Capital’s chairman and chief executive officer, said he doesn’t think the offer is serious and has no plans to hire an investment bank.
“The offer is ridiculously low,” Ran said in a telephone interview. The bid is about 50 percent of Manhattan Bridge Capital’s book value, he said. “They are totally disregarding the value of the business and the fact the company is profitable and growing.”
Manhattan Bridge Capital will respond to Capstone and G Asset Management in the next few days, he said.
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