American Strategic Investment Co. Announces Response to Bellevue Capital Partners, LLC Tender Offer

Rhea-AI Summary

American Strategic Investment Co. (NYSE: NYC) has responded to Bellevue Capital Partners' tender offer. Bellevue aims to buy up to 125,000 shares of ASIC's Class A common stock at $9.25 per share. The company's board remains neutral on the offer, not advising shareholders either way. A Solicitation/Recommendation Statement on Schedule 14D-9 and a Letter to Stockholders dated May 21, 2024, have been filed with the SEC. Shareholders are urged to review these documents and make an individual decision regarding the offer, which expires on July 5, 2024, unless extended or terminated earlier.

Positive

• Responding to Bellevue's offer indicates active management and transparency.
• The company provided clear documentation for shareholders to review.
• Shareholders have until July 5, 2024, to consider the offer, giving them ample time.

Negative

• The board's neutrality may cause uncertainty among shareholders.
• Lack of a recommendation might imply potential risks or uncertainties related to the offer.
• The offer price of $9.25 per share may not reflect the true value of the stock, potentially undervaluing the company.

Financial Analyst

The tender offer by Bellevue Capital Partners to purchase up to 125,000 shares of American Strategic Investment Co.'s Class A common stock at $9.25 per share presents a significant event for shareholders. Typically, a tender offer like this indicates that the acquiring firm sees potential value in the target company that may not yet be reflected in the current market price. The current offer price should be compared with the existing stock price to determine if there’s a premium, which usually signifies Bellevue's confidence in the company's prospects.

However, the company's decision to remain neutral and not recommend an action for shareholders raises some questions. It could suggest that the board believes the offer is fair but not overwhelmingly beneficial, or they may have concerns about the strategic implications of such a purchase. Investors should look at the company's recent financial performance and strategic plans to make an informed decision. The absence of a company recommendation adds a layer of complexity, making individual due diligence even more critical.

From a short-term perspective, shareholders might consider the immediate financial gain from selling at the offered price. Long-term investors should evaluate Bellevue's potential impact on company strategy and governance, which could profoundly affect future stock performance.

Market Research Analyst

In the context of the broader market, the tender offer by Bellevue Capital Partners can be seen as a move to consolidate more control or influence over American Strategic Investment Co. Examining Bellevue's history and strategic interests can provide clues about their longer-term intentions. For instance, if Bellevue has a track record of turning around companies or pushing for strategic changes, this could indicate future volatility or growth opportunities for NYSE: NYC.

Since the offer price is $9.25 per share, it’s also pertinent to analyze trading volumes and price movements leading up to and following the announcement. Such dynamics may reveal market sentiment and speculative activities around the stock. If the current market price is significantly different from the offer price, it may also affect shareholder decisions on whether to tender their shares.

NEW YORK--(BUSINESS WIRE)-- American Strategic Investment Co. (NYSE: NYC) (“ASIC” or the “Company”) announced today that it has filed with the Securities and Exchange Commission (“SEC”) a Solicitation/Recommendation Statement on Schedule 14D-9 and Letter to Stockholders dated May 21, 2024, regarding the tender offer commenced by Bellevue Capital Partners, LLC (“Bellevue”) on May 7, 2024, to purchase up to 125,000 shares of the Company’s Class A common stock at a price of $9.25 per share (the “Tender Offer”). The Company’s board of directors has made no determination of the fairness of the Tender Offer or whether it is in the best interests of stockholders, makes no recommendation and is neutral as to whether stockholders should accept or reject the offer to tender their shares. The Company urges each stockholder to review the Schedule 14D-9 and the accompanying Letter to Stockholders as well as the tender offer materials sent by Bellevue and to make its own decision regarding the Tender Offer based on the available information. The Tender Offer will expire at 5:00 PM, New York City time, on July 5, 2024, unless extended or earlier terminated by Bellevue.

About the Company

American Strategic Investment Co. owns a portfolio of commercial real estate. Additional information about ASIC can be found on its website at https://www.americanstrategicinvestment.com.

Additional Information and Where to Find It

This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell shares of the Company’s Class A common stock, nor is it a substitute for the tender offer materials that Bellevue filed with the SEC upon commencement of the tender offer. Bellevue initially filed tender offer materials on Schedule TO on May 7, 2024, and the Company initially filed a Solicitation/Recommendation Statement on Schedule 14D-9 with the SEC with respect to the tender offer on May 21, 2024. Holders of shares of the Company’s Class A common stock are urged to read the tender offer materials (including the Offer to Purchase, a related Letter of Transmittal and certain other tender offer documents) and the Solicitation/Recommendation Statement and accompanying Letter to Stockholders (as each may be amended or supplemented from time to time) because they contain important information that holders of shares of the Company’s Class A common stock should consider before making any decision regarding tendering their shares. The Offer to Purchase, the related Letter of Transmittal and certain other tender offer documents, as well as the Solicitation/Recommendation Statement, are available to all holders of shares of the Company at no expense to them. The tender offer materials and the Solicitation/Recommendation Statement are available for free at the SEC’s website at www.sec.gov or on the Company’s website at https://www.americanstrategicinvestment.com. The information contained in, or that can be accessed through, the Company’s website is not a part of, or incorporated by reference herein. The Company files annual, quarterly and current reports, proxy statements and other information with the SEC. You may read any reports, statements or other information filed by the Company with the SEC for free on the SEC’s website at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240520403676/en/

Investor Relations

info@ar-global.com

(866) 902-0063

Source: American Strategic Investment Co.

FAQ

What is the tender offer made by Bellevue Capital Partners?

Bellevue Capital Partners has made a tender offer to purchase up to 125,000 shares of American Strategic Investment Co.'s Class A common stock at a price of $9.25 per share.

When does the tender offer by Bellevue Capital Partners expire?

The tender offer will expire on July 5, 2024, at 5:00 PM New York City time, unless extended or earlier terminated.

What stance has the board of American Strategic Investment Co. taken on the tender offer?

The board of American Strategic Investment Co. has taken a neutral stance, neither recommending for nor against the tender offer.

What documents has American Strategic Investment Co. filed in response to the tender offer?

American Strategic Investment Co. has filed a Solicitation/Recommendation Statement on Schedule 14D-9 and a Letter to Stockholders with the SEC.

How should shareholders of American Strategic Investment Co. respond to the tender offer?

Shareholders are urged to review the Schedule 14D-9, the Letter to Stockholders, and the tender offer materials sent by Bellevue to make an informed decision.