Acquisition of EVOQ Properties Inc. by Group Led by Atlas Capital Investors III, LLC May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of EVOQ Properties Inc. (OTC: EVOQ) by an entity established by affiliates of Atlas Capital Investors III, LLC, Square Mile Capital Management, LLC, and USAA Real Estate Company. On August 18, 2014, EVOQ announced the signing of a definitive merger agreement pursuant to which the Atlas Group will acquire EVOQ. Under the terms of the agreement, holders of EVOQ will receive approximately $12.96 per share in cash for each share of EVOQ owned.
Is the Proposed Acquisition Best for EVOQ and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at EVOQ is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. As an initial matter, while the $12.96 merger consideration represents a premium of 52.1% based on EVOQ’s closing price on August 15, 2014, this amount is still significantly below the average one-day premium of over 117% for comparable transactions in the past year. Further, on July 28, 2014, EVOQ released its 2013 earnings, reporting strong increases over 2012. Specifically, the company reported a 17% year-over-year revenue growth, for total revenues of $16.3 million in 2013, a $2.4 million increase compared to 2012. Additionally, EVOQ reported net income of $6.4 million, a $21.9 million increase over 2012.
In light of these facts, Robbins LLP is examining EVOQ’s board of directors’ decision to merge the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
EVOQ shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
EVOQ shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.