The management group--operating as Boca Raton-based Concord Assets Group Inc.--submitted the buyout proposal following recent negotiations with a special committee of minority stockholders, who combined forces last month in a move to increase shareholder value in Milestone Properties.
Based on GlobeSt.com estimates, the deal is worth an estimated $3.5 million on 1.34 million shares of stock outstanding as of March 22.
The deal excludes the estimated 2.95 million shares, or 66.8%, owned by the management insiders--Leonard S. Mandor, Milestone Properties' chairman, and Robert A. Mandor, Milestone's president. The two also serve as chairman and president of Concord Assets.
News of the acquisition apparently had a positive impact on the Milestone stock, which closed up 59 cents Monday at $2.47 on volume of 11,200 in trading over the counter across the bulletin board.
The buyout bid followed a disclosure last month by a shareholders' group--led by Loeb Partners Corp., a New York-based securities broker-dealer--to propose alternative courses of action for the management and operation of the Boca Raton company.
Other shareholders recommending changes in the Milestone's operations included Loeb Arbitrage Fund, a Loeb Partners-affiliated New York-based securities broker-dealer; Dr. George J. D'Angelo, a retired Pennsylvania physician as an individual; and Tampa-based GJD Partners L.P. and Value Equity Advisors Inc., two investment companies controlled by D'Angelo.
Disclosure of the proposed buyout comes as Boca Raton company just reported reduced net income of $541,051, or 13 cents a share, on reduced total revenue of $13.3 million for the year ended Dec. 31, compared with a net gain of $2.1 million, or 50 cents a share, on revenue of $19.6 million for the same period in 1999.
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