Agellan holder Sandpiper boosts holdings, enters talks
SANDPIPER GROUP has initiated discussions with the board of trustees of Agellan Commercial Real Estate Investment Trust regarding the strategy and future plans of Agellan, as well as a reconstitution of the board. These discussions are continuing. If discussions with the board are concluded in a manner that is satisfactory to Sandpiper, it will issue a press release to provide an update as appropriate.
To the extent discussions with the board are unsuccessful, Sandpiper expects to take further steps as it deems appropriate, including requisitioning a unitholders meeting of Agellan for the purpose of reconstituting the board. Should Sandpiper proceed with the requisition, it looks forward to providing unitholders with additional information regarding its highly accretive proposals for the strategy and future of Agellan, as well as its highly qualified board nominees.
Samir Manji, chief executive officer, Sandpiper Group, stated: “Sandpiper and its principals have a history and reputation of creating significant shareholder value. We believe Agellan trades at a material discount to the value of its underlying asset base. The REIT has demonstrated a growth strategy that includes issuing materially dilutive equity rather than pursuing other avenues for unitholder value creation. As the second-largest unitholder of the REIT and with the support of a substantial percentage of the unitholder base, we look forward to representing the interests of our fellow unitholders while working constructively with the board and management team to execute on our action plan, which we are confident will crystallize significant value to Agellan’s unitholders.”
In connection with the potential requisition, Sandpiper has solicited the support of a small number of unitholders and today has the support of several significant unitholders representing a substantial percentage of the units, including ELAD Canada Inc. Sandpiper looks forward to engaging with additional institutional unitholders and the retail unitholding base of Agellan. Sandpiper expects to strengthen the board and effect positive change at Agellan.
Early warning report disclosure
The units of Agellan are being acquired for investment purposes.
As a result of purchases of units on the Toronto Stock Exchange, the aggregate number of units held by all of Sandpiper’s managed funds at Sept. 14, 2017, was 3,283,620, representing 10.0 per cent of all issued and outstanding units. Prior to Sept. 14, 2017, Sandpiper held less than a 10-per-cent ownership interest in Agellan. The aggregate consideration paid to acquire the units that are the subject of the accompanying early warning report filed by Sandpiper is $37.1-million, being 1,983,620 units purchased through the facilities of the TSX at an average price of $11.20 per unit and 1.3 million units purchased pursuant to the bought deal public offering at a price of $11.45 per unit on Feb. 27, 2017.
Francis Xavier Camenzuli, Richard Dansereau, Dayna Gibbs, Glen Joseph Ladouceur, Rafael Lazer, Anthony J Messina, Kelly Smith
(ACR) Shares: 32,830,461