Third Avenue Recommends Rejection of ‘Mini-Tender’ Offer from MacKenzie Capital Management, LP
April 15 2016 - 4:45PM
Business Wire
Third Avenue Management LLC (“Third Avenue”) announced today
that it is aware of an unsolicited “mini-tender” offer dated April
6, 2016, made by MacKenzie Capital Management, LP (“MCM”) to
purchase up to 1,500,000 Shares of Third Avenue Focused Credit Fund
(“FCF”), a series of the Third Avenue Trust (MUTF: TFCIX, TFCVX).
Third Avenue is not in any way associated with MCM, the offer, or
the offer documentation.
Third Avenue recommends against shareholders tendering shares in
response to this unsolicited offer, for the reasons described
below:
MCM’s offer price of $2.00 per share is 61.76% below FCF’s April
6, 2016 net asset value per share of $5.23. Third Avenue believes
this price is not in the best interest of shareholders as it is
materially below Third Avenue’s assessment of possible returns and
timing of those returns in FCF’s liquidation.
“Mini-tender” offers seek only a small portion of a company’s
outstanding shares, thereby avoiding many disclosure and procedural
requirements that apply to larger tender offers under the rules of
the U.S. Securities and Exchange Commission (“SEC”).
The SEC has cautioned investors about these kinds of offers in
an investor alert. The SEC noted that these offers “have been
increasingly used to catch investors off guard.” To read more about
the risks of “mini-tender” offers, please review the alert on the
SEC’s website at http://www.sec.gov/investor/pubs/minitend.htm.
Shareholders should consult their financial advisors and should
exercise caution with respect to MCM’s offer.
Third Avenue requests that a copy of this news release be
included with all distributions of materials relating to MCM’s
mini-tender offer for FCF shares.
About Third Avenue Management
Third Avenue Management LLC is a New York-based investment
advisory firm that offers its services to private and institutional
clients. Third Avenue adheres to a disciplined bottom-up value
investment strategy in order to identify investment opportunities
in undervalued securities of companies with high quality assets,
understandable businesses and strong management teams that have the
potential to create value over the long term. Third Avenue
Management offers value-oriented strategies through mutual funds,
UCITS funds, separate accounts and alternative products.
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Sard Verbinnen & Co.Dan Gagnier, 212-687-8080
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