Veris Residential's ( NYSE: VRE ) board on Thursday rejected Kushner Companies unsolicited proposals to acquire the apartment REIT for for $16 per share or to externally manage the company, saying neither proposal was in shareholders' best interests.
The proposal to acquire the company "grossly undervalues the company in its current form and denies Veris Residential ( VRE ) shareholders the substantial value expected to be unlocked from the ending completion of the company's strategic transformation," the board said in a letter to Kushner Cos.
Veris ( VRE ) shares are up 0.2% to $15.30 in Thursday premarket trading.
In addition, any proposal "must include confirmation of the specific sources for requisite debt and equity capital (including details of expected commitments and anticipated due diligence) to be considered," the letter said, citing Veris's ( VRE ) prior experience with Kushner Cos. being unable to substantiate equity or debt financing sources.
In responding the the external management proposal, the board said it's convinced that such a structure would be "deleterious to the company's intrinsic value and severely limit its strategic flexibility."
The company's board also disputes the Kushner Cos.' assertion that the board has ignored the suitor, saying it has engaged with Kushner Cos. through multiple in-person meetings and phone calls.
Veris's ( VRE ) board also said its financial advisers spoke with equity partners, related to Kushner's offer to acquire Veris's Harborside assets, and were "unable to confirm the readiness of any of them to provide you with financing."
"We reiterate that this inability to substantiate your capital casts serious doubt on Kushner Companies' ability to complete any meaningful transaction with the company," the letter from the board said.
Last month, Veris ( VRE ) stock surged after the REIT confirmed that it received the proposals from Kushner Companies.
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Veris Residential rejects Kushner Cos. proposals for sale, external management