Independent proxy advisory firms Institutional Shareholder Services Inc. and Glass Lewis & Co. LLC have called on ZAIS Group Holdings Inc. shareholders to back the company's going-private merger proposal.
The deal involves the company merging with unit ZGH Merger Sub Inc. and Z Acquisition LLC, and becoming a privately held company in the process.
ZAIS Group Holdings Chairman and Chief Investment Officer Christian Zugel is the sole managing member of Z Acquisition.
ISS said shareholders should support the proposal because of the "thorough auction process and positive market reaction." Glass Lewis said the board took "considerable steps" to evaluate potential alternatives and that the proposal likely represents the most favorable offer available to shareholders.
The firms also pointed out that the $4.10-per-share price that unaffiliated stockholders would receive in the merger represents a premium of more than 138% to the closing price of the company's shares on Sept. 5, 2017, the last trading day before the going-private proposal was announced.
ZAIS Group Holdings' annual meeting of shareholders is scheduled May 17.