FARMINGTON HILLS, MI-Agree Realty Corp., owner and developer of single-tenant properties and neighborhood community shopping centers, has rejected a $396-million buyout offer from Compson Holding Corp.

Offering little explanation, Agree released a statement late Tuesday stating: “The board has concluded that continuing to implement the company’s business plan will provide the best long-term value to its stockholders and has informed Compson that the company is not for sale.”

Principals of Compson Holding Corp. own approximately 3.1% of the outstanding shares of Agree Realty Corp. In a letter dated May 10, Compson president Michael Comparato said for more than three months his company had been performing legal and due diligence leading to the initial offer of $34.50 per share, then $36 per share, which were refused. Calling it the company’s “best and final offer,” Comparato’s company most recently proposed $38.75 per share, or $396 million, to buy out Agree.

Comparato said the offers were made to maximize shareholder value. “Due to the relatively low trading volume of the stock, our offer presents an extraordinary opportunity for large shareholders of ADC to monetize their shares without materially impacting the stock price, as would happen if they attempted to sell their shares on the open market,” he wrote in the May 10 letter.

He also noted that this most recent offer represented a “19.4% premium to the May 9 closing price, a 24% premium to the average trading price for the last 30 trading days, a 24.5% premium to the average trading price for the last 60 trading days and a 15.6% premium to the all-time high.”

At March 31, Agree Realty Corp.’s total assets were valued at $216.6 million and its portfolio consisted of 59 properties totaling 3,362,971 million sf in 15 states. The portfolio was 98.1% leased at the end of the quarter. Fully diluted weighted average shares outstanding were 7.65 million shares at the quarter’s end.

Compson Holding is currently developing Renaissance Commons, a seven-million-sf mixed-use project in Boynton Beach, FL.

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