An investigation on behalf of investors of Electro Rent Corporation (NASDAQ:ELRC) in connection with the proposed takeover was announced and NASDAQ:ELRC stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 06/08/2016 -- The acquisition of Van Nuys, CA based Electro Rent Corporation is under investigation concerning potential wrongdoing. The investigation was announced for investors, who currently hold NASDAQ:ELRC shares, concerning whether the takeover of Electro Rent Corporation . by Platinum Equity for $13.12 per share is unfair to NASDAQ:ELRC stockholders.
Investors who purchased shares of Electro Rent Corporation (NASDAQ:ELRC) and currently hold any of those NASDAQ:ELRC shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain directors of Electro Rent Corporation breached their fiduciary duties owed to NASDAQ:ELRC investors in connection with the proposed acquisition.
On May 31, 2016, Platinum Equity and Electro Rent Corporation announced that they have entered into an agreement under which Electro Rent Corporation (NASDAQ:ELRC) would be acquired by Platinum Equity for approximately $323.4 million.
Under the agreement, Platinum Equity would acquire all of Electro Rent Corporation' common stock. Electro Rent Corporation (NASDAQ:ELRC) stockholders will receive $13.12 per share.
However, given that Electro Rent Chairman Daniel Greenberg and a member of his immediate family, who collectively own approximately 29% of the company's outstanding shares of common stock, have already entered into voting agreements in support of the sale and have granted an affiliate of Platinum Equity irrevocable proxies to execute those agreements, the investigation concerns whether the offer is unfair to Electro Rent Corporation (NASDAQ:ELRC stockholders. More specifically, the investigation concerns whether the Electro Rent Corporation (NASDAQ:ELRC 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.
On June 6, 2016, NASDAQ:ELRC shares closed at $13.02 per share.
Those who are current investors in Electro Rent Corporation shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com