Asta Funding Reiterates Its Rejection Of Unsolicited Tender Offer

Asta Funding, Inc. ASFI revealed that its Board reiterated the rejection of the unsolicited tender offer initiated by MPF Investco 4, LLC's fully-owned subsidiary, The Mangrove Partners Master Fund. The latest decision comes after a careful consideration of the amended unsolicited offer. Asta Funding said that Mangrove amended its previously announced unsolicited tender offer on April 15 to acquire up to three million shares of common stock of Asta. The bidder also boosted the price to $9.50 per share from $9.00 a share, and extended the expiration date to May 9. Aside from that, the amendment added some additional conditions to Mangrove's obligation to consummate its offer. The company stated that in reaffirming its recommendation, the Board felt that the increased price offer remained at the bottom of the range offered in the Company's self-tender, which is structured as a "Dutch Auction". Asta pointed out that the price range in the self-tender was $9.50- $10.25, while the offer was set to expire on May 12, 2016. Asta Funding said that the Board noted that the Company's self-tender would be more beneficial for the shareholders of the Company if they did not participate in the tender. The company's President and CEO, Gary Stern, said that "Our Board of Directors unanimously reaffirmed its prior conclusion that the Mangrove offer is not in the best interests of the Company's shareholders, and its recommendation that shareholders reject the Mangrove offer. Our Board remains confident in the future of the Company." Shares of the company traded down by 0.10% on Thursday.