Bennett is moving ahead with plans he revealed in April to take the company private to avoid the costs of going public, a move that would save the company an estimated $2.5 million a year.
Dallas — This article was originally published by WFAA’s content partner, the Dallas Business Journal. Read the original article here.
Ashford Cos., the hospitality real estate asset management company run by Dallas businessman Monty Bennett, has ceased operating as a publicly traded company.
Shareholders of the Dallas-based company voted July 22 to terminate the registration of its common stock and delist it from the New York Stock Exchange.
The last trading day on the NYSE American is Friday, July 26th.
Bennett is moving ahead with plans he announced in April to take the company private to avoid the costs of going public, a move he expects will save the company about $2.5 million annually.
Shareholders have also approved a 1-for-10,000 reverse stock split followed by a 1-for-10,000 reverse stock split, both to take effect on July 29. The split will allow shareholders holding less than 10,000 shares to cash out at $5 per share. As a result, 1.1 million shares, or about 31% of the company’s outstanding common stock, will be cashed out, according to Hotel Investment Today.
Ashford manages two publicly traded real estate investment trusts, Ashford Hospitality Trust Inc. (NYSE: AHT) and Braemar Hotels & Resorts Inc. (NYSE: BHR). Ashford Hospitality Trust survived a proxy fight this year from activist investor Blackwells Capital.
Blackwells argued that the AHT board did not have shareholders’ best interests in mind when it pushed for Bennett’s removal. But Bennett remained as chairman of the board after he and another director failed to receive the votes necessary for re-election. The remaining directors did not accept Bennett’s resignation.
A showdown was also expected between Braemar’s board and Blackwells, but the two companies announced a “cooperation agreement” on July 2. Blackwells agreed to withdraw its director nominations and vote with Braemar at the REIT’s 2024 annual meeting. The investor also plans to purchase an additional 3.5 million Braemar shares, which will add an independent director to the board and “will take into account Blackwells’ input in the selection.”
Ashford’s shares closed at $4.96 on July 25. They are up about 35% year to date but down more than 46% over the past 12 months. As of July 25, the company’s market capitalization was about $17.1 million. Ashford is reporting revenue of $746.8 million for 2023.
