Stratus Properties has announced that it has turned down a non-binding buyout proposal from NXSTEP Opportunity Partners. The real estate company will now be reviewing a revised offer from NXSTEP, despite citing that it contains similar “incorrect assumptions” as the initial proposal.
Proposal Details
The latest buyout offer disclosed by Stratus stockholder Oasis Management values the company at about $27.30 per share, slightly higher than the previous proposal of $27.18 per share with potential adjustments. Oasis has also revealed that a support agreement has been reached with NXSTEP following Stratus’s successful defense against a proxy battle launched by Oasis in 2021.
Company Valuation
In response to the offers, Stratus’s board of directors has expressed that they believe the earlier proposal significantly undervalues the company. They plan to carefully review the revised proposal and make decisions in line with their fiduciary responsibilities, promising to provide feedback to NXSTEP in due time.
NXSTEP’s Financial Position
As the buyout bidder, NXSTEP is a private equity firm specializing in real estate investments. Their debut fund, which closed in August, secured over $100 million in limited partner commitments.
Market Response
Following these developments, Stratus’s stock experienced a slight decline in after-hours trading, dropping to $22.05 from a regular session close of $22.50.
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