Agel­lan holder Sand­piper boosts hold­ings, en­ters talks

Stockwatch Daily - - FRONT PAGE - Mr. Samir Manji of Sand­piper re­ports

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

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