Arca Capital Opposes $14.75 Amended Buyout Offer at AmTrust; Urges NO Vote on Privatization

PRAGUE, June 8, 2018 /PRNewswire/ -- Arca Capital, one of the largest shareholders of AmTrust Financial Services, Inc., is continuing to express its concern that the amended buyout offer of $14.75 per share does not reflect the true value of the company. 

Arca Capital has emphasized its own analysis as well as the analysis of Institutional Shareholder Services, and Short Hills Capital in identifying a long-term price target for the company between $25 and $31 per share. Arca is demanding what it sees as a fair value offer in excess of $22 per share. 

"Despite this marginal price increase, long-term investors such as Arca Capital, Blackrock, Vanguard and Invesco are looking at taking an incredible loss on our investments in a fundamentally strong company. We urge Blackrock, Vanguard and Invesco to think of the retirees and families for whom they invest and vote against this deal which still forces them to take an over 50% loss over 18 months," said Pavol Krúpa, Chairman of Arca Capital.

Arca Capital also pointed to AmTrust's own literature in suggesting that securing a substantially higher offer from the Zyskind/Karfunkel family is indeed possible. 

In a press release from May 25, 2018, the Zyskind/Karfunkel family stated they refuse to increase their offer. 

"The $13.50 per share cash offer represents a 33% premium to AmTrust's unaffected stock price and a 10% increase in value over the buyer...no price increases are available," says AmTrust's May 25th press release.

Less than two weeks later, the price was increased to $14.75 per share, contrary to their statement. Arca Capital sees the fact that the Zyskind/Karfunkel family so adamantly denied willingness to compromise just two weeks ago as evidence that the family is bluffing about their flexibility in negotiations. 

"Barry Zyskind, George Karfunkel and Leah Karfunkel know well the true value of AmTrust is between $25 to $31 per share thus they will continue to increase their offers IF investors continue to demand fair value. We urge investors again not to fall for Zyskind/Karfunkel shady tricks and once again reject this low-ball offer," added Mr. Krúpa.

Arca Capital, which owns approximately 2.4 percent of outstanding shares, has been an outspoken advocate for fellow minority shareholders in the lead up to the June 4th vote and will continue its advocacy in the lead up to the June 21st vote. This advocacy has involved creating an organization, www.ProtectAmTrustInvestors.org, reaching out to relevant influencers, and organizing demonstrations at AmTrust headquarters involving angry shareholders. 

"Since the beginning of our campaign in March 2018, we have been contacted by numerous ordinary American investors through our site, ProtectAmTrustInvestors.org. These men and women, some with only a few hundred shares, have lost retirement savings and college savings investing in a firm whose stock has declined way more than it should based on its fundamentals. These people have applauded our campaign and have resoundingly implored us to push for a truly fair value. We stand with these ordinary investors in urging a NO vote on privatization," added Mr. Krúpa.

About Arca Capital

Arca Capital is a private investment group with a strong Central European exposure. It focuses on the development of its private equity activities oriented on energy, real estate, retail and service activities, as well as regulated activities focused on building and managing fund structures focusing on energy, real estate and financial services. Arca Capital also carries out projects with a so-called activist approach, with the goal of remedying and eliminating management actions that have a negative impact on companies, and with the goal of achieving significant positive change in strategy, financial structure or management. 

Assets under management over $1.7 billion USD.

Contact

Barbora Hanakova
[email protected]
Mob: +420 776 575 096
Tel: +420 224 231 813

SOURCE Arca Capital