by BASSETT, Va., – Bassett Furniture Inds. said it has rejected two unsolicited, preliminary non-binding proposals from CSC Generation Holdings to acquire the company, after its board of directors found they each significantly undervalued the company.
The most recent proposal made public today was for $21 per share in cash. The company did not reveal specifics about the other offer.
In a statement, Robert H. Spilman Jr., chairman and chief executive officer, said, “CSC’s effort to make the proposal public does not change the fact that it undervalues the company. The board, with the assistance of independent legal and financial advisors, carefully considered both offers as well as the comments related to CSC’s digital first strategy and determined that the proposals substantially undervalue the company, are highly opportunistic given recent turmoil in the stock markets, and not in the best interests of the company and its numerous stakeholders.”
He added that CSC acquired a large number of shares in the company earlier this year, of which the majority were sold shortly thereafter, and Bassett has proactively engaged with CSC consistently since the company became aware of CSC’s investment.
“During those discussions, it was of particular interest to us that CSC founder Justin Yoshimura first broached the idea of a commercial partnership with the company and admitted that the category of retail which Bassett operates in was particularly difficult for them and their experience with Sur La Table not entirely transferable to furniture. This lack of understanding of our business, the necessity of our omnichannel strategy and the multitude of highly collaborative relationships and partnerships that Bassett has successfully cultivated over 120 years reinforced our concerns about CSC’s approach.”
The company said that its board of directors “will continue to act in the best interests of all shareholders and is confident in Bassett’s ability to create shareholder value over the near and long term.”
Raymond James serves as financial advisor to Bassett. McGuireWoods and Vinson & Elkins serve as legal counsel to Bassett.
