Orion Properties board rejects Kawa Capital's $2.75 per share offer

Orion Properties Inc. (NYSE: ONL) announced its board of directors unanimously rejected a revised acquisition proposal from Kawa Capital Management to acquire all outstanding shares for $2.75 per share in cash.

The board determined the proposal, submitted July 17, significantly undervalues the company and does not serve stockholders' best interests, according to a company statement. The decision followed a review process conducted with independent financial and legal advisors.

"The Orion Board of Directors has reviewed the revised proposal in consultation with its outside financial and legal advisors and determined that Kawa Capital's proposed transaction continues to significantly undervalue the Company and is not in the best interests of Orion stockholders," said Reginald H. Gilyard, non-executive chairman of the Orion board.

This marks the second rejection of a Kawa Capital proposal by Orion's board. Gilyard stated the board remains open to evaluating opportunities that enhance stockholder value and will consider proposals that appropriately value the company.

Orion Properties is a real estate investment trust that owns and manages office properties across the United States, primarily leased on a single-tenant net lease basis. The company was spun off from Realty Income (NYSE: O) in November 2021 and is headquartered in Phoenix.

Wells Fargo serves as financial advisor and Hunton Andrews Kurth LLP as legal advisor to Orion in the matter.

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