Litex Responds To Craftmade Rejection
GRAND PRAIRIE, Texas, March 24 /PRNewswire/ -- Litex Industries, Limited ("Litex") today announced that its subsidiary, Litex Acquisition #1, LLC, has issued a letter to stockholders of Craftmade International, Inc. (OTCQX: CRFT) which responds to the recent recommendation from the Craftmade board of directors to reject Litex's US $5.25 per share purchase offer made on March 2, 2010.
Litex is "deeply disappointed to learn that Craftmade's board of directors recommended that its stockholders reject our offer to acquire all of the outstanding shares of Craftmade's common stock, par value $0.01, at $5.25 per share, which offer price represents a premium of approximately 59.1% over the closing price on March 1, 2010 and a premium of approximately 61.3% over the prior 30 day average closing price for the period ending on March 1, 2010."
"Litex believes that our current offer represents full and fair value for the common stock of Craftmade based on our review of the information available. However, we stand ready to negotiate with Craftmade management in good faith in order to develop an appreciation for how our offer "undervalues Craftmade," an assertion made in Craftmade's recommendation to stockholders filed March 15, 2010 on Schedule 14D-9 with the Securities and Exchange Commission. We have repeatedly expressed our willingness to Craftmade to reconsider our current proposal if provided with credible evidence that there is greater value in the Company's business that we have not adequately recognized. Unfortunately, to date, Craftmade has categorically refused to engage or negotiate with Litex. The current stance of Craftmade's board denies Craftmade stockholders the opportunity to even explore the potential of a business combination with Litex."
Litex's letter goes on to discuss, in some detail, the current value of its purchase offer and several misleading and confusing statements made by Craftmade regarding Litex's tender offer as well as the consistent failure of Craftmade to maximize stockholder value in recent years. The letter to stockholders also emphasizes the board's recent actions that have dramatically reduced public company disclosures and transparency for its stockholders.
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