Alico (ALCO) – Odd Lot Tender – $60 return

Current Price – $33.3 Tender Price – $34.0 Upside – 2% ($65 for odd lot holders) Expiration Date – October 3rd, 2018 SEC Filling   Alico announced tender offer to purchase 7.2% of outstanding shares at $34/share. Odd-lot holders stand to gain $60 risk free if the deal proceeds as expected. Tender will be financed from cash on hand. The offer is likely to be significantly oversubscribed as controlling shareholders and management (61% ownership) announced their intentions to participate in the tender. There is even a clause indicated further potential stock sales by insiders:

In the event all of their tendered shares are not purchased, such investors may seek to privately negotiate the repurchase of a portion of their common stock by the Company following the completion of this Offer to help fund a one-time debt obligation. Any privately-negotiated repurchase of any common stock held by 734 Investors, LLC and 734 Agriculture, LLC following the completion of this Offer may occur on terms more or less favorable than the Offer to Purchase, or at a per share price greater or less than the Purchase Price. There is no agreement between these shareholders and the Company related to such shares.

So this will likely work out for odd-lots only.

3 COMMENTS

  1. Thinley w

    Anyone know why IB hasn’t posted this on their “Corporate Action Manager”?

  2. Austin

    @Thinley w

    I contacted IB today about this. Their (vague) response is that they (1) are aware of the tender but (2) haven’t received the necessary info from “management”

  3. Pavel V

    Unwillingness of the insiders to sale GSB for 4.15$ was a clear sign that this tender offer was not management’s scheme to get rid of their shares.

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