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7:47 AM ET, 03/14/2013 - Street Insider
After the close, Alico, Inc. (NASDAQ: ALCO) announced that it hired Deutsche Bank Securities to pursue potential strategic alternatives, including a possible sale of the company. The move follows recent news that Alico's majority shareholder, Atlantic Blue Group, Inc., is seeking the sale of its entire equity position in Alico to a strategic or financial buyer in light of recent changes in the U.S. federal tax code.
With a market cap of approximately $320 million, speculator are pointing to an unsuccessful $406 million takeover of the citrus land management company from 2004.
At that time, National Land Partners LLC, a real estate investment firm based in Philadelphia, and Dion Money Management, a registered investment adviser in Williamstown, Mass. said they were willing to pay between $52.25 to $55.75 a share for the company. Shares outstanding of about 7.3 million are roughly the same now as in 2004 and a deal at those prices would suggest a price of $380.4 million to $405.9 million.
Interesting, in 2004, the Atlantic Blue Group stood in the way of a sale.
While past bidder National Land Partners LLC may not be involved this time around, investors in the company may look at the price the offered as a benchmark.
Shares have recovered substantially from multi-year lows as real estate value in Florida has started to recover from the credit crash.
A deal at the prices mentioned above would suggest upside of 20-28 percent from current levels.
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