G Asset Management Announces Proposal to Acquire a Controlling Interest in Barnes & Noble that Values the Company at $22 per Share
NEW YORK, Feb. 21, 2014 /PRNewswire/ -- G Asset Management, LLC ("GAM"), a private investment management firm, announced Thursday night that it has made a proposal to acquire 51% of Barnes & Noble, Inc., valuing the company at $22 per share, a ~30% premium to the current market price.
Alternatively, GAM has proposed to acquire 51% of the Nook segment, valuing the segment at $5 per share. GAM stated in its proposal that it was extremely confident that if the Nook segment is separated from the profitable retail and college business, substantial shareholder value would be created.
Both offers are subject to, among other conditions, the obtaining of the necessary financing, due diligence, and the negotiation and executing of definitive transaction documents and in the case of the interest in the entire company, complete access to the company's current credit facility and the cash on the balance sheet.
Previously GAM has publicly communicated its view that the company is substantially undervalued in its current form, more specifically that the aggregate value of the key segments of the company's business is not reflected in the company's share price.
The current proposal is an increase from GAM's November 15, 2013 proposal to the board, which valued the company at $20 per share. In that proposal, GAM suggested that the company should immediately separate the unprofitable Nook segment from the college and retail segment and recommended commencing a rights offering for the Nook segment to existing shareholders.
The proposal also highlighted the substantial potential value if the public markets were able to access the fast growing textbook rental segment and digitization of the college bookstore theme through a separate tradable public security.
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about proposed transactions, including the proposed acquisition of some or all of the interests in Barnes & Noble and other matters that are not historical facts. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, the satisfaction of conditions to the proposed transactions. These forward-looking statements speak only as of the date of this press release, and G Asset Management, LLC expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in G Asset Management's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Nothing in this press release shall constitute a solicitation to buy or an offer to sell shares of Barnes & Noble. The information contained herein reflects the opinions and projections of G Asset Management, LLC, which opinions and projections are subject to change without notice at any time subsequent to the date of issue. The firm does not represent that any opinion or projection will be realized. All information provided is for informational purposes only and should not be deemed as investment advice or a recommendation to purchase or sell any specific security. G Asset Management acknowledges that it and its affiliates currently hold positions in Barnes & Noble. G Asset Management and/or its affiliates manage fund/s that is in the business of trading – buying and selling – securities and financial instruments. G Asset Management and/or its affiliates may buy, sell, cover or otherwise change the form of its investments in Barnes & Noble for any reason. G Asset Management and/or its affiliates hereby disclaims any duty to provide any updates or changes to the analyses contained here including, without limitation, the manner or type of any G Asset Management and/or its affiliates investment.
SOURCE G Asset Management, LLC