MacKenzie Realty Capital Inc. launched a cash tender offer to buy up to 800,000 shares of Summit Healthcare REIT Inc.'s outstanding common stock at $1.56 apiece.
The healthcare real estate investment trust said its board recommends shareholders reject the offer, citing the "very low" price of the offer that reflects a roughly 44% discount compared to the estimated per-share value of $2.80 reported by the company for 2017. The offer is set to expire June 18, unless extended.
MacKenzie and its affiliates beneficially own 1,470,201.8 shares, or 6.38%, of the REIT's outstanding common stock, according to a May 18 filing.
MacKenzie earlier in 2018 offered to buy up to 900,000 shares of Summit Healthcare, but ended up acquiring less than that number after the offer expired.