MCB withdraws proposal to acquire Whitestone REIT

MCB Real Estate sent a letter to the Board of Trustees of Whitestone REIT (WSR) withdrawing MCB’s previously announced proposal to acquire the company. MCB sent the following letter to the Whitestone Board: “MCB Real Estate delivered an attractive, fully-financed proposal to the Whitestone Board to acquire Whitestone for $15 per share in an all-cash transaction… The Board’s refusal to grant due diligence, engage in any meaningful discussions, or commence a strategic alternatives process is not consistent with its duties and indicates a boardroom culture of entrenchment. While we continue to believe our proposal is the best path forward for shareholders, our attempts to engage have been rebuffed at every turn, so we are withdrawing our proposal to acquire Whitestone at this time… When pressed on whether the Board is open to opportunities to enhance value on Whitestone’s third quarter 2024 earnings call, Whitestone CEO David Holeman falsely asserted that the Board is actively looking at strategic options… Given the Board’s refusal to engage with us regarding our proposal or conduct a process to explore whether other parties may have an interest in transacting with Whitestone, Mr. Holeman’s comments are at best a naive sidestep to the question, and at worst a downright lie to shareholders… As we have said from the onset of this process, our interests are aligned with other Whitestone shareholders. Whitestone shareholders deserve a board that is committed to considering all opportunities to maximize value. If the Whitestone Board continues its pattern of delay and entrenchment, MCB believes the entire Board should be removed at the next annual meeting of shareholders… While we are withdrawing our proposal at this time, we remain a significant shareholder of the company and will continue to consider all options available to MCB and other Whitestone shareholders to ensure that the Board upholds its responsibilities.”