Apparently the rumors are true. Bloomberg reported this morning that a $1 billion IPO for Empire State Realty Trust was announced that would "consolidate a group of closely held companies" (Empire State Building Associates, 60 East 42nd St Associates, and 250 West 57th St Associates) with Malkin Holdings LLC as the supervisor. Bank of Amerrilwide and Goldman are the co-leads.
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Note that ESB will have two classes of shares A & B. The B shares will be held by the Malkin Family and have 50 votes per share. This is outrageous. As a long time investor in REITs I will not invest in or advise my clients to invest in any company that maintains two classes of shareholders. By using two classes the common shareholder is robbed of value and management has used your money without allowing you a say in the business..
Interesting. I haven't reviewed it in any detail to be honest. Do the A class shareholders have any vote? How much is it diluted by the Malkin Family - i.e. do they control 90% or 51% of the voting rights?
Also, I wonder if they're effectively taking out the Helmsley estate through this IPO? Again, I haven't done any research on it at all, but keep meaning to.
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