NexPoint Comments on Proposed Acquisition of UDF IV by Ready Capital
NexPoint Real Estate Opportunities has commented on the proposed acquisition of UDF IV by Ready Capital . The deal offers a potential $5.89 per share, which includes up to $75 million in contingent cash distributions, significantly below UDF IV's reported book value of $9.47 per share.
NexPoint expresses concerns about the transaction's terms and the current Board's transparency, particularly regarding withheld Disclosure Schedules material to the merger agreement. The company continues to advocate for shareholders to support NexPoint's nominees at the upcoming December 10, 2024 annual meeting, which represents the first court-ordered election of independent Trustees in over eight years.
NexPoint Real Estate Opportunities ha commentato l'acquisizione proposta di UDF IV da parte di Ready Capital. L'accordo offre un potenziale di $5,89 per azione, che comprende fino a $75 milioni in distribuzioni di contante contingentato, significativamente al di sotto del valore contabile riportato di UDF IV di $9,47 per azione.
NexPoint esprime preoccupazioni riguardo ai termini della transazione e alla trasparenza dell'attuale Consiglio, in particolare per quanto riguarda le Disclosure Schedules trattenute, materiali per il contratto di fusione. L'azienda continua a sostenere che gli azionisti supportino i candidati di NexPoint alla prossima assemblea annuale del 10 dicembre 2024, che rappresenta la prima elezione di Trustees indipendenti ordinata dal tribunale in oltre otto anni.
NexPoint Real Estate Opportunities ha comentado sobre la adquisici贸n propuesta de UDF IV por Ready Capital. El acuerdo ofrece un potencial de $5.89 por acci贸n, que incluye hasta $75 millones en distribuciones en efectivo contingentes, significativamente por debajo del valor contable reportado de UDF IV de $9.47 por acci贸n.
NexPoint expresa preocupaciones sobre los t茅rminos de la transacci贸n y la transparencia de la actual Junta, particularmente en relaci贸n con los Disclosure Schedules retenidos, que son materiales para el acuerdo de fusi贸n. La empresa sigue abogando para que los accionistas apoyen a los nominados de NexPoint en la pr贸xima reuni贸n anual del 10 de diciembre de 2024, que representa la primera elecci贸n de fideicomisarios independientes ordenada por el tribunal en m谩s de ocho a帽os.
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NexPoint Real Estate Opportunities a comment茅 sur l'acquisition propos茅e de UDF IV par Ready Capital. L'accord propose un potentiel de 5,89 $ par action, ce qui inclut jusqu'脿 75 millions $ en distributions de liquidit茅s conditionnelles, ce qui est nettement inf茅rieur 脿 la valeur comptable report茅e de UDF IV de 9,47 $ par action.
NexPoint exprime des pr茅occupations concernant les conditions de la transaction et la transparence de l'actuel conseil d'administration, en particulier concernant les Disclosure Schedules retenues, qui sont essentielles 脿 l'accord de fusion. L'entreprise continue 脿 encourager les actionnaires 脿 soutenir les candidats de NexPoint lors de l'assembl茅e g茅n茅rale annuelle pr茅vue le 10 d茅cembre 2024, qui repr茅sente la premi猫re 茅lection de fiduciaires ind茅pendants ordonn茅e par le tribunal depuis plus de huit ans.
NexPoint Real Estate Opportunities hat sich zur vorgeschlagenen 脺bernahme von UDF IV durch Ready Capital ge盲u脽ert. Der Deal bietet ein potenzielles Angebot von 5,89 $ pro Aktie, das bis zu 75 Millionen $ an bedingten Barverteilungen umfasst und damit erheblich unter dem berichteten Buchwert von UDF IV von 9,47 $ pro Aktie liegt.
NexPoint 盲u脽ert Bedenken hinsichtlich der Bedingungen der Transaktion und der Transparenz des aktuellen Vorstands, insbesondere in Bezug auf die zur眉ckgehaltenen Disclosure Schedules, die f眉r den Verschmelzungsvertrag wesentlich sind. Das Unternehmen setzt sich weiterhin daf眉r ein, dass die Aktion盲re die Kandidaten von NexPoint bei der bevorstehenden j盲hrlichen Hauptversammlung am 10. Dezember 2024 unterst眉tzen, die die erste vom Gericht angeordnete Wahl unabh盲ngiger Treuh盲nder seit 眉ber acht Jahren darstellt.
- Court order secured for first shareholder meeting in 8 years
- Potential acquisition deal providing shareholder liquidity
- Proposed transaction values shares at $5.89
- Offer price 37.8% below book value ($5.89 vs $9.47)
- 40% of deal value depends on uncertain contingent distributions
- Material terms in Disclosure Schedules withheld from shareholders
- Board oversight concerns including fraud and disclosure violations
Insights
The proposed Ready Capital acquisition of UDF IV represents a significant development, though with notable concerns. The
The transaction's timing, coinciding with NexPoint's proxy contest and the first board election in eight years, suggests reactive rather than proactive management. The withholding of material terms in the Disclosure Schedules limits shareholders' ability to properly evaluate the deal's true value proposition. These factors, combined with the significant discount to book value, indicate potential governance issues that could impact shareholder value realization.
This situation presents significant corporate governance implications. The court-mandated annual meeting after an eight-year hiatus highlights serious oversight deficiencies. The intentional withholding of Disclosure Schedules from the merger agreement raises material transparency concerns and could potentially violate securities regulations regarding full and fair disclosure to shareholders.
The backdrop of previous fraud allegations and disclosure violations against the current board members adds another layer of complexity to the proposed transaction's evaluation. The timing of this acquisition proposal, just before the court-ordered board election, warrants scrutiny regarding whether it serves as a defensive measure against the proxy contest rather than maximizing shareholder value.
Proposed Transaction Demonstrates NexPoint's Ongoing Impact at UDF IV
If Elected, NexPoint Nominees Would Review and Pursue Transaction to Maximize Shareholder Value
"NexPoint is pleased that our multi-year advocacy and litigation continues to benefit UDF IV shareholders by bringing forward a potential transaction that could deliver much-needed liquidity. While we evaluate this proposal further, shareholders should note upfront that the potential
Over
Though the proposed transaction shows that our efforts are making an impact, we remain concerned about the lack of accountability and transparency at UDF IV under the current Board, which includes Trustees who presided over years of fraud, disclosure violations, poor performance, and persistent illiquidity. Notably, our concerns are reinforced by the intentional withholding of the material terms set forth in the Disclosure Schedules to the merger agreement, without which shareholders cannot accurately evaluate the proposed merger.
If elected, NexPoint's nominees would thoroughly review the proposed terms of the transaction and pursue the best possible outcome for shareholders. 聽We therefore continue to urge UDF IV shareholders to support NexPoint's nominees at the upcoming annual meeting."
NexPoint's ongoing efforts to drive accountability at UDF IV have already led to a compelling the Company to hold an annual meeting and fair election of all independent Trustees for the first time in over eight years. These efforts now continue to benefit shareholders by spurring this potential acquisition.
The Company has announced the court-ordered annual meeting will take place on December 10, 2024, which will be the last opportunity for shareholders to vote in the critical Board election. NexPoint urges shareholders to : Paul S. Broaddus, Edward N. Constantino, John A. Good, and Julie Silcock, and reject UDF IV's current Board, which has overseen criminal and fraudulent behavior and significant losses in shareholder value and liquidity.
If elected, NexPoint's nominees are dedicated to working on behalf of all shareholders to drive accountability and maximize value at UDF IV, including by reviewing and pursuing transactions that align with shareholders' interests.
- Shareholders are encouraged to vote FOR NexPoint's nominees using the GREEN .
For more information, visit or email NexPoint at udfinvestors@nexpoint.com.
About NexPoint
NexPoint Real Estate Opportunities, LLC is a wholly owned subsidiary of NexPoint Diversified Real Estate Trust, Inc. (NYSE: NXDT), an affiliate of NexPoint Advisors, L.P.
NexPoint Advisors, L.P. is an SEC-registered adviser on the NexPoint alternative investment platform. It serves as the adviser to a suite of funds and investment vehicles, including a closed-end fund, interval fund, business development company, and various real estate vehicles. For more information visit
IMPORTANT INFORMATION
NexPoint Real Estate Opportunities, LLC ("NexPoint") intends to deliver a proxy statement with respect to its solicitation of proxies for nominees to be elected to the United Development Funding IV ("UDF IV") Board of Trustees at the Annual Meeting of Shareholders of UDF IV. The date for the Annual Meeting has not yet been set and NexPoint is not soliciting proxies at this time. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE NEXPOINT PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) WHEN AVAILABLE IN ITS ENTIRETY BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT ANY SOLICITATION. Copies of the documents will be made available free of charge from NexPoint by accessing the website .
NexPoint, its affiliates, their directors and executive officers and other members of management and employees may be participants (collectively "Participants") in the solicitation of proxies by NexPoint. Information about NexPoint's nominees to the UDF IV Board of Trustees and information regarding the direct or indirect interests in UDF IV, by security holdings or otherwise, of NexPoint, the other Participants and NexPoint's nominees will be available in the proxy statement. NexPoint's disclosure of any security holdings will be based on information made available to NexPoint by such Participants and nominees. UDF IV is no longer subject to the reporting requirements of the Securities Exchange Act of 1934, as amended. Consequently, NexPoint's knowledge of significant security holders of UDF IV and as to UDF IV itself is limited.
CONTACT INFORMATION
UDF IV Investor Contacts
Chuck Garske / Jeremy Provost / Theo Caminiti (Okapi Partners):
Email: info@okapipartners.com
Phone: (212) 297-0720
For Additional Information/Updates on UDF IV
Website:
Email: udfinvestors@nexpoint.com
Media Contacts
Lucy Bannon (NexPoint): lbannon@nexpoint.com
Paul Caminiti/Pamela Greene (Reevemark): nexpointteam@reevemark.com
NexPoint Investor Relations
Kristen Thomas: ir@nexpoint.com
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SOURCE NexPoint Advisors, L.P.
FAQ
What is the proposed acquisition price for UDF IV?
When is UDF IV's annual shareholder meeting scheduled?
How does the proposed acquisition price compare to UDF IV's book value?
Who are NexPoint's proposed nominees for UDF IV's board?
