Arca Capital to Demand Fair Value Appraisal of AmTrust; Will Exercise Appraisal Rights
The Central Europe based investment firm contends the fair value of AmTrust is approximately double the current $14.75 per share amended offer price and has already sent a written demand for appraisal to management
PRAGUE, June 19, 2018 /PRNewswire/ -- Arca Capital, one of the largest shareholders of AmTrust Financial Services, Inc., has retained counsel in its continuing campaign to prevent what it sees as an absurdly low-priced buyout of minority shareholders by the Zyskind/Karfunkel family. Carl Stine of Wolf Popper LLP, who specializes in challenging merger and acquisition transactions, will represent Arca Capital.
In accordance with Delaware law, Arca Capital has already sent a written demand for appraisal to AmTrust's management. Should shareholders vote to approve the buyout at the June 21st Special Meeting, Arca Capital intends to proceed with exercising its appraisal rights through the Delaware Court of Chancery.
Arca Capital, which owns approximately 2.4% of outstanding shares of AmTrust Financial, has led an advocacy campaign on behalf of ordinary investors to oppose the privatization of the company and continues to urge investors to vote NO on the amended $14.75 offer.
"Neither the $13.50 per share offer nor the amended $14.75 per share offer represent anywhere near fair value for the firm. We urge shareholders to vote NO on the privatization transaction in advance of the June 21st Special Meeting. The Zyskind/Karfunkel family knows well that the long term price target of AmTrust is between $25 and $31 per share thus they will continue to increase their offers, as they have done twice before, IF shareholders reject this lowball offer. Arca Capital will accept nothing less than fair value for its shares and urges other shareholders not to do so either," said Pavol Krúpa, Chairman of Arca Capital.
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
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