Middlefield Banc Corp. (NASDAQ: MBCN) rose 4.1% after an activist holder is pushing the bank to sell itself.
Ancora Holdings, which has an 8.7% stake and described itself as the bank’s largest holder, said it believes that company could be worth $ 36- $ 38 share in a potential sale, according to a statement. A $ 38 sale price would represent 55% upside from MBCN’s Friday closing price.
“During our five-plus-year holding period, we have consistently communicated to the company, along with shareholders, our belief that running a legitimate sale process to sell the Bank represents the best risk-adjusted outcome for all stakeholders,” Ancora wrote in a letter to Middlefield Banc holder. “In our view, the Board, in response, has been consistent in its resolve to remain entrenched and do little to improve shareholder value.”
Ancora, which first disclosed its stake in MBCN in an August 2019 13-D filing, said it’s confident that there are a number of buyers willing to buy Middlefield (MBCN). MBCN has a market cap of about $ 144 million.
See from February, Middlefield Banc appointed James Heslop II as president, CEO.