The Shareholders Foundation announces that an investor, who currently holds shares of Schuff International, Inc (OTCMKTS:SHFK), filed a lawsuit in effort to halt the proposed takeover of Schuff International, Inc by HC2 Holdings.
Investors who purchased shares of Schuff International, Inc (OTCMKTS:SHFK) and currently hold any of those OTCMKTS:SHFK shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to OTCMKTS:SHFK stockholders by agreeing to sell Schuff International, Inc too cheaply via an unfair process to HC2 Holdings, Inc.
On August 21, 2014, HC2 Holdings, Inc. (OTCQB: HCHC) announced the commencement of a tender offer for all of the outstanding shares of common stock of Schuff International, Inc that it does not already own for $31.50 per share, net to the holder thereof in cash, without interest thereon and subject to any required tax withholding.
However, the plaintiff claims that the takeover undervalues Schuff International, Inc. Indeed, Schuff International, Inc reached in the open market as high as $33.50 per share on August 28, 2014. Furthermore, Schuff International’s performance improved recently. In fact, Schuff International, Inc reported that its annual Total Revenue increased from $392.16 million in 2012 to $416.14 million in 2013 and that its Net Loss of $5.03 million in 2012 turned into a Net Income of 12.71 million in 2013. Shares of Schuff International, Inc (OTCMKTS:SHFK) grew from $6.50 per share on August 2012 to as high as $31.50 per share on August 19, 2014,
In addition, the plaintiff alleges that the process is also unfair to Schuff International, Inc investors. Indeed, HC2 Holdings, Inc. currently owns 70% of the outstanding shares of common stock of Schuff International, Inc
On October 7, 2014, the tender offer ended. HC2 was only able to acquire 89% of Schuff’s outstanding common stock and indicated to the markets that it intended to make additional purchases of Schuff stock. In order to acquire 90% of Schuff (which represents the required number of shares to execute a short-form merger and automatically cash-out minority shareholders at $31.50), HC2 allegedly purchased shares above the $31.50 tender price.
On December 9, 2014, OTCMKTS:SHFK shares closed at $32.00 per share.
Those who are current investors in Schuff International, Inc 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