Monmouth RE receives unsolicited $3.8B takeover bid

Monmouth Real Estate Investment Corp., a real estate investment trust based in Holmdel, confirmed it has received an unsolicited takeover proposal from investment firm Blackwells Capital LLC.

Blackwells has offered $18 per share to acquire all of the real estate investment trust’s outstanding shares, its second unsolicited takeover bid — an earlier one, made earlier in December, was for $16.75 per share, according to a Monmouth news release.

In its own news release, Blackwells confirmed the offers and said the latest all-cash offer is valued at approximately $3.8 billion.

The proposal is nonbinding and represents a 5.9% premium to the Dec. 18 closing stock price, Monmouth said in its news release.

Monmouth’s board determined the original proposal failed to represent the company’s strategic value and was not in its best interests. It said the new proposal will be considered at its next meeting, and will continue to act in the best interests of the business.

Blackwells, meanwhile, called for a Special Committee to evaluate the offer, excluding Chairman Eugene Landy and his son, CEO Michael Landy, as well as certain other members.

Venable LLP is serving as Monmouth’s legal counsel, while CS Capital Advisors is acting as financial adviser.