SAN DIEGO, April 11, 2017 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP (J&W) launched an investigation into whether the board members of UCP, Inc. (NYSE: UCP) breached their fiduciary duties in connection with the proposed sale of the Company to Century Communities, Inc. (NYSE: CCS).
On April 11, 2017, UCP announced it had signed a definitive merger agreement with Century. Under the terms of the agreement, each outstanding share of UCP common stock will be converted into the right to receive $5.32 in cash and 0.2309 of a newly issued share of Century common stock. Based on April 10, 2017, closing sale price of Century's common stock the implied value of the total stock and cash consideration to be received by UCP's stockholders in the merger is only $11.35 per share.
The investigation concerns whether the UCP board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for UCP shares of common stock. Given the Company's outlook for future revenue and earnings growth, Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration; moreover, according to Yahoo! Finance, at least one Wall Street analyst's estimated price target is $14.00 per share.
If you are a shareholder of UCP and believe the proposed buyout price is too low and you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (email@example.com) at 619-814-4471.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
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SOURCE Johnson & Weaver, LLP