Activist Offers $1.10/Share for Global Med Technologies
Global
Med Technologies (OTC: GLOB) is trading well below its intrinsic valuation, according
to at least one activist hedge fund. Victory Park Capital principal Richard Levy insisted
in a letter to the board that if the equity markets do not reflect the value of the
company then it is incumbent upon the board to take action to realize that value for
shareholders.
As a result, Victory Park recommended one of two options:
-
Publicly auction the company for sale to a strategic or financial buyer.
-
Pursue a buyout transaction led by Victory Capital.
Victory Capital announced that they are prepared to purchase all of the company’s
outstanding equity securities that it does not already own for $1.10 per share in
cash, subject to completion of limited, confirmatory due diligence and negotiations.
Moreover, they are prepared to move quickly to realize this transaction and set a
deadline of December 16th for a board response.
Given that this number represents a 22% premium to the current market price for Victory
Capital’s offer or even more for a competitive auction, this situation is definitely
one worth watching for shareholders and investors comfortable in playing such opportunities.
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