Mangrove Partners Continues Activist Battle Against Asta Funding

Mangrove Partners, an activist investment firm, disclosed on Tuesday a 17.4 percent stake in Asta Funding, Inc. ASFI.

Mangrove Partners announced in late May an unsolicited tender offer to acquire up to 3 million shares of common stock of Asta Funding at a price of $9.00 per share. The company's board of directors recommended shareholders reject the bid, as it does not reflect a fair valuation.

"Our Board of Directors unanimously concluded that Mangrove's unsolicited tender offer significantly undervalues Asta, is inadequate and is not in the best interests of Asta and its shareholders," Gary Stern, president and chief executive officer said following Mangrove Partners' offer. "We remain very confident in the growth prospects of Asta. We continue to believe that Mangrove's tender offer is opportunistic and would transfer current and future value of Asta to Mangrove at a price we believe does not represent the value of Asta's assets, business and prospects."

Related Link: Mangrove Announces Waiver Of Condition Of Tender Offer Of Asta Funding

In a regulatory filing document, Mangrove Partners disclosed its 17.4 percent stake and said that it has not had discussions with the company for board representation, but intends to do so soon. Mangrove Partners added that if the company does not voluntarily offer Board representation then it will "seek the representation we deem appropriate."

Mangrove Partners further pointed out management's long-term track record of performance in which the stock has fallen 12.04 percent over the past year, 22.07 percent over the past 3 years, 8.95 percent over the past 5 years and 76.88 percent over the past 10 years.