NEW YORK, May 19, 2015 /PRNewswire/ -- Juan E. Monteverde, a partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of MCG Capital Corp. ("MCG Capital" or the "Company") (Nasdaq: MCGC) for potential breaches of fiduciary duties in connection with the sale of the Company to PennantPark Floating Rate Capital Ltd. ("PennantPark") (Nasdaq: PFLT) for approximately $175 million in a cash and stock transaction. The Company's stockholders will receive $4.521 in PennantPark shares, as well as $0.226 in cash for each share of MCG Capital common stock they own. The deal values each share of MCG Capital at around $4.75 for each share, which represents a premium of about 15.8% to MCG Capital's April 28, 2015 closing price. Additionally, at least one analyst has estimated a price of $4.20 for a share of MCG Capital.
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The investigation focuses on whether MCG Capital's Board of Directors breached their fiduciary duties to the Company's stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the Company to the detriment of MCG Capital's shareholders.
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If you own common stock in MCG Capital and wish to obtain additional information and protect your investments free of charge, please visit us at www.faruqilaw.com/MCGC or contact Juan E. Monteverde, Esq. either via e-mail at [email protected] or by telephone at (877) 247-4292 or (212) 983-9330.
Faruqi & Faruqi, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Juan E. Monteverde, Esq.
Toll Free: (877) 247-4292
Phone: (212) 983-9330
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