Wilshire Real Estate Investment Inc. Buys Back 8.7% of Outstanding Shares in Non-Cash Transaction With Former Management Company
PORTLAND, Ore.--(BUSINESS WIRE)--Dec. 14, 1999--Wilshire Real Estate Investment Inc. (Nasdaq:WREI), an opportunistic investment group specializing in mortgage and real estate related assets, today announced that it has repurchased 992,587 shares of its common stock, representing approximately 8.7% of shares outstanding, from Wilshire Financial Services Group (OTC BB:WFSG) and subsidiaries, a formerly affiliated company.
The shares, valued at approximately $2.50 per share, as well as 1.1 million options and cumulative dividends payable of approximately $397,000, were received in exchange for a corresponding offset against the value of a PIK note owed by WFSG to WREI. The shares and options represented WFSG's entire position in WREI.
"This transaction is consistent with WREI's authorized share repurchase plan, and with our objective of being internally managed," said Andrew A. Wiederhorn, chairman and CEO. "We believe that WREI's shares, which currently trade at approximately 50% of book value as of Sept. 30, 1999, represent good value, particularly when we have the opportunity to repurchase the shares while preserving cash for liquidity purposes. |
