-
If you purchased shares of UCP Inc (NYSE:UCP) and currently hold any of those NYSE:UCP shares, you have certain options and you should contact the Shareholders Foundation, Inc.
-
To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
April 17, 2017 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of UCP Inc (NYSE:UCP), was announced concerning whether the takeover of UCP Inc. by Century Communities, Inc for a value of approximately $11.35 per share is unfair to NYSE:UCP stockholders.
The investigation by a law firm concerns whether certain officers and directors of UCP Inc breached their fiduciary duties owed to NYSE:UCP investors in connection with the proposed acquisition.
On April 11, 2017, Century Communities, Inc. (NYSE: CCS) and UCP Inc (NYSE:UCP) jointly announced an agreement pursuant to which the two companies have agreed to merge in a transaction with an aggregate value of $336 million, including the payment of certain indebtedness. In the merger, each outstanding share of UCP Inc (NYSE:UCP) common stock will be converted into the right to receive $5.32 in cash and 0.2309 of a newly issued share of Century common stock. Based on the closing sale price of Century's common stock as reported on April 10, 2017 on the NYSE, the implied value of the total stock and cash consideration to be received by UCP's stockholders in the merger is $11.35 per NYSE:UCP share.
However, given that at least one analyst has set the high target price for NYSE:UCP shares at $14.00 per share and given that NYSE:UCP shares traded earlier this year in the open market as high as $12.60 per share, the investigation concerns whether the offer is unfair to NYSE:UCP stockholders. More specifically, the investigation concerns whether the UCP Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
UCP Inc reported that its annual Total Revenue rose from $278.79 million in 2015 to $349.37 million in 2016 and that its Net Income of $2.37 million in 2015 grew to $9.24 million in 2016.
Shares of UCP Inc (NYSE:UCP) reached in 2014 as high as $16.75 per share.
