NEW YORK CITY-American Realty Capital Properties Inc. on Thursday said it had withdrawn its $9.7-billion offer to acquire Cole Credit Property Trust III. Had it gone through, the acquisition would have created the largest publicly traded net lease REIT.
“Since ARCP first reached out to CCPT III, it has been our sincere hope that we would be able to explore an amicable combination of our two companies that would maximize value for our stockholders as well as those of CCPT III,” ARCP’s chairman and CEO, Nicholas Schorsch, says in a statement. “We received encouragement for this transaction from stockholders of both companies, research analysts, and leaders in the broker-dealer and financial community.”
Notwitshanding this support, Schorsch adds, “CCPT III’s actions make it clear that its directors and management are completely unwilling to explore a transaction with us. The economic, legal, reputational and other risks inherent in the internalization transaction, and the CCPT III board’s unwillingness to engage us, forces us to withdraw our offer.”
Following ARCP’s initial offer on March 19, a letter from Phoenix-based Cole Holdings, under the signature of executive chairman Christopher Cole and president and CEO Marc Nemer and addressed to Cole’s business partners, affirmed the decision by CCPT III’s board that the unsolicited ARCP offer “would not be in the best interests of CCPT III and its stockholders,” and that CCPT III’s previously announced decision to acquire Cole Holdings would best serve those interests. Subsequently, CCPT III’s acquisition of Cole Holdings went through on April 5; the combined company will pursue a listing on the New York Stock Exchange.
As for ARCP, Schorsch says, “Our objectives have been and will remain to grow earnings and build shareholder value. We are focused on continuing to increase value for ARCP’s investors from our highly accretive property acquisition pipeline and other potential, significant strategic combinations.”