Offer Price Below Current Trading Price
BINGHAM FARMS, Mich., June 26 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today said it is advising shareholders to reject an unsolicited offer
by MacKenzie Patterson, Inc. to purchase up to 84,000 shares of Malan's
outstanding common stock. The offer, which Malan believes was first made on
June 13, 2002 and amended June 25, 2002, is at a price substantially lower
than the market price on the New York Stock Exchange.
According to an offer obtained by Malan and a subsequent news release
issued by MacKenzie on June 24, 2002, MacKenzie is offering $4.65 per share,
less distributions paid after May 30, 2002, for the Malan stock, substantially
below the closing price of Malan's common stock on June 25, 2002, of $5.45.
The offer is said to expire on July 17, 2002, according to the news release.
Malan Realty Investors filed a preliminary proxy statement with the
Securities and Exchange Commission (SEC) last week outlining its proposed plan
of liquidation to be voted on by shareholders at its annual meeting,
tentatively scheduled for August 28, 2002. Contained in the proxy statement
is the company's estimate of net proceeds of liquidation to be distributed to
shareholders, which is expected to range from $4.75 to $8.50 per share.
"We continue to believe that $8.00 per share is a realistic expectation of
net proceeds to be distributed in liquidation," said Jeffrey Lewis, president
and chief executive officer of Malan Realty Investors. "Even if a shareholder
were not inclined to wait out the liquidation process, based on the current
trading prices, he or she could do substantially better than the MacKenzie
offer by selling in the open market" continued Lewis.
Lewis urged shareholders to review Malan's preliminary proxy statement
before making a decision to tender shares to MacKenzie. The preliminary proxy
statement is available at the SEC's web site, http://www.sec.gov, and the company's
website at http://www.malanreit.com .
The company said it has had no contact with MacKenzie regarding the tender
offer, either prior to or after the announcement of the offer, and it became
aware of the offer through inquiries from brokers and through press releases
issued by MacKenzie. Neither Malan nor its officers and directors have any
affiliation with MacKenzie.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. The company owns a
portfolio of 57 properties located in nine states that contains an aggregate
of approximately 5.4 million square feet of gross leasable area.
Safe Harbor Statement: This news release contains forward-looking
statements. Although the company believes that the statements and projections
are based on reasonable assumptions, actual results may differ from those
projected. Key factors that could cause actual results to differ materially
include uncertainties regarding the length of time required to sell the
company's properties, the cost of litigation in which the company is involved,
the costs of liquidation, bankruptcies and other financial difficulties of
tenants, including the ultimate disposition of lease agreements with Kmart
Corporation, and other risks associated with the commercial real estate
business, as detailed in the company's filings from time to time with the
Securities and Exchange Commission. Many of these factors are beyond the
control of the company. Malan does not undertake to update these forward-
looking statements.
News releases for Malan Realty Investors are available on the company's
Web site at http://www.malanreit.com or through Company News On-Call by fax at (800)
758-5804, ext. 114165, or http://www.prnewswire.com .
SOURCE Malan Realty Investors, Inc.
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Related links:
http://www.malanreit.com
CONTACT:
Elliott J. Broderick, Chief Financial
Officer, of Malan Realty Investors, +1-248-644-7110; or Fred
Nachman of Marjan Communications Inc., +1-312-867-1771
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