SAN DIEGO and ARLINGTON, Va., April
29, 2015 /PRNewswire/ -- Shareholder rights attorneys
at Robbins Arroyo LLP are investigating the proposed acquisition of
MCG Capital Corporation (NASDAQ: MCGC) by PennantPark Floating Rate
Capital Ltd. (NASDAQ: PFLT). On April
29, 2015, the two companies announced the signing of a
definitive merger agreement pursuant to which PennantPark will
acquire MCG Capital. Under the terms of the agreement, MCG Capital
shareholders will receive the equivalent of $4.75 in a combination of PFLT shares and cash
for each share of MCG Capital common stock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/mcg-capital-corp
Is the Proposed Acquisition Best for MCG Capital and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at MCG Capital is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $4.75
merger consideration represents a premium of only 18.2% based on
MCG Capital's closing price on March 30,
2015. This premium is significantly below the average
one-month premium of nearly 44.5% for comparable transactions
within the past five years. In the last three years, MCG Capital
has traded as high as $5.55 on
August 1, 2013. Most recently,
MCG Capital traded above the offer price on January 22, 2014, trading as high as $4.76.
On March 2, 2015, MCG Capital
reported strong earnings for its fourth quarter 2014. Notably,
net income for the fourth quarter of 2014 was $2.07 million, up 61.5% from the third quarter of
2014.
In light of these facts, Robbins Arroyo LLP is examining MCG
Capital's board of directors' decision to sell the company now
rather than allow shareholders to continue to participate in the
company's continued success and future growth prospects.
MCG Capital shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for shareholders and the disclosure of material information.
MCG Capital shareholders interested in information about their
rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, or via the shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP