We continue to investigate the fairness of the price of $15.00 per share in cash at which Radius Global Infrastructure, Inc. (Nasdaq: RADI) (“Radius”) has agreed to be sold to EQT and the Public Sector Pension Investment Board (“PSPIB”).
If you remain a Radius shareholder and question the fairness of the price, you may contact our firm to discuss your legal rights at no charge by completing and submitting the form below.
Why is there an investigation?
On March 1, 2023, after the market closed, Radius announced that it had agreed to be sold to EQT and PSPIB for $15.00 per share in cash. The proposed sale has been approved by the Radius board of directors (“Board”).
On April 6, 2023, Radius filed a preliminary proxy (“Proxy”) with the Securities and Exchange Commission concerning the proposed sale.
“In our view, the Proxy raises a number of concerns regarding the fairness of the process followed by the Board to negotiate the sale,” explained Joshua Fruchter, a founding partner of Wohl & Fruchter. “This includes authorization granted to company management in early August 2022 to speak with representatives of EQT and another bidder concerning post-transaction employment and equity rollovers before the material terms of a transaction had been agreed upon.”
The Proxy also discloses that the Board formed a Transaction Committee to, among other things, negotiate a sale of Radius, but does not identify all of its members, which prevents analysis of their independence and disinterestedness. Additionally, from the narrative in the Proxy it appears that, notwithstanding the formation of the Transaction Committee, the full Board and its financial advisors primarily led the negotiations with EQT and other bidders.
We have also previously observed that the $15.00 per share deal price is below the 52-week high for Radius of $16.52 per share on June 10, 2022, which indicates that EQ and PSPIB may be taking advantage of the temporary market downturn to acquire Radius at a bargain price.
Further, according to an analysis of Wall Street price targets for Radius in the 90 days before the deal was announced published on Seeking Alpha, there is an average price target for Radius of $15.40 per share, and a high price target for Radius of $18.00 per share, which indicates that several Wall Street analysts think the deal price is too low.
Finally, a comment appearing on Seeking Alpha on March 1, 2023, published by an investor with the username Grade-Spiritual, observed that in November 2021, Radius announced a mandatory redemption of warrants to purchase common stock when Radius was trading above $16 per share.