G&L; Realty to Go Private With Sale to Top Executives
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The board of G&L; Realty Corp. has agreed to sell the small Beverly Hills-based real estate investment trust to its two top executives, a move that will transform the publicly traded firm into a private company.
Chief Executive Daniel M. Gottlieb and President Steven D. Lebowitz agreed to pay $11.25 in cash--or a total of nearly $15 million--for each of the G&L; common shares they do not already own. However, the acquisition price may fall to as low as $11 a share if certain sale purchase expenses exceed a specific amount.
The sale is expected to be finalized in the third quarter of this year pending approval by shareholders.
Gottlieb and Lebowitz own about 29% of the company’s shares but can boost their combined holdings to 43% by converting other securities to G&L; common stock.
The two executives founded the firm, which specializes in health-care related buildings, in 1967. G&L; became a real estate investment trust in December 1993.
On the New York Stock Exchange, G&L; shares closed at $11.05, up 5 cents.
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