Blue Ridge Real Estate Company (OTCQB: BRRED) today announced that it is offering to purchase for cash all of its common shares held by holders of 99 or fewer shares of Blue Ridge as of November 21, 2013 at a purchase price of $11.00 per share. The Offer price represents a premium of approximately 37% to the closing price of the Company’s common shares of $8.00 on the OTC Markets as of the close of business on November 20, 2013. In addition to the $11.00 per share purchase price, Blue Ridge is offering each tendering holder of 99 or fewer shares a $100 bonus upon completion of the Offer for properly executed tenders of all shares beneficially owned by such holder which are received and not withdrawn prior to the Expiration Time of the Offer. In connection with the Offer, if the results of the Offer allow, Blue Ridge intends to deregister its common shares with the SEC and take the Company private.
As of November 21, 2013, Blue Ridge had 348 shareholders of record and, of those shareholders, 231 shareholders of record held 99 or fewer shares, and also had an estimated 74 additional shareholders who beneficially owned 99 or fewer shares. As of November 21, 2013, there were 2,450,424 Blue Ridge common shares outstanding. The Company estimates its odd lot holders hold approximately 7,000 Blue Ridge common shares, or less than 1% of Blue Ridge’s outstanding common shares. Blue Ridge plans to use cash on hand to pay for shares purchased under the Offer as well as the cash bonus payments. If all the holders of 99 or fewer shares tender their shares, Blue Ridge estimates the aggregate cost of the Offer would be approximately $329,093, including an estimated aggregate purchase price for the odd lot shares of approximately $76,120, estimated aggregate bonus payments of approximately $30,500 and estimated fees and expenses of approximately $222,473.