National RV Rejects Purchase Offer
Motorized manufacturer National RV Holding Inc. (NRVH), Perris, Calif, has rejected a $92 million proposal to sell the company to an investment group that includes Bob Lee, founder of National RV Holdings subsidiary Country Coach Inc.
In a letter to CCA Acquisition Group Inc., Los Angeles, NRVH Chairman Doy B. Henley said CCA’s bid to purchase the company for $6.25 a share “severely undervalued” the company, which owns Junction City, Ore.-based Country Coach and National RV Inc., Perris.
“The board carefully reviewed and considered the proposal and found it to severely undervalue the company and its growth prospects and thus to not be in the best interests of our stockholders,” Henley wrote.
Besides Lee, a member of the National Holding’s board, CCA includes investors B. Riley & Co. and SACC Partners.
NRVH lost $12.8 million through the first nine months of the year, and earlier this month laid off 50 employees. “The company is implementing a concrete business strategy with the goals of returning to profitability and positioning its business for the long term,” National said in a press release.
In the letter to CCA, Henley said the investment group may have violated company bylaws by acquiring more than 15% of NRVH stock, and that Lee “may have breached the fiduciary duties to the company by providing CCA with confidential company information.”