GEO Investing

RealD Inc. (RLD) rejects the $12.00 non-binding takeover offer in October 2014.  It is reasonable for to think that, if the Board of Directors agreed to proceed with the sale of the company, the desired price would be higher than $12.00.  The Company operates as a licensor of 3D and other visual technologies worldwide.

Here are the reasons why GeoInvesting is tracking this story:

  • On May 02, 2014, activist investor Starboard Value filed a 13D suggesting that it has purchased 6.3% of the company’s total shares. After three further purchases of the company’s shares, on October 01, 2014, Starboard Value was holding 9.9% of the company’s equity interest. In addition, Starboard Value, along with its affiliates, submitted a non-binding unsolicited offer to acquire all the shares outstanding that it does not own at a price of $12.00 per share, which represented a 29% premium over that day’s closing price of $9.27.

On November 03, 2014, according to Bloomberg, RLD rejected the $12.00 per share non-binding offer from Starboard Value.

  • Yesterday RLD reported its third quarter 2015 financial results and also announced that:

“Board of Directors has initiated a process to explore a full range of strategic alternatives with the goal of enhancing value for all shareholders.

The Company has engaged Moelis & Company LLC as its financial advisor to assist in its evaluation of potential strategic alternatives. The Company noted that there can be no assurance that the strategic alternatives process will result in the Company pursuing a particular transaction or completing any such transaction. The Company has not set a definitive timetable for completion of the process and does not intend to disclose further developments until its Board of Directors approves a specific action or otherwise concludes the review of the strategic alternatives.”

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