Asset Acceptance to purchase more than 1.9 million shares in tender offer ended June 7

By Lisa Kerner

Charlotte, N.C., June 13 - Asset Acceptance Capital Corp. said it expects to purchase 1,982,238 properly tendered shares at $18.75 per share for a total purchase price of about $37.2 million in its tender offer that ended June 12. The shares represent 5.7% of the stock outstanding.

The shares include the 1,858,000 shares the company is obligated to purchase and an additional 124,238 shares that the company elected to purchase under the optional purchase provision of the tender offer for a total of 1,982,238 shares, a news release stated.

Because more than 1,982,238 shares were tendered, Asset Acceptance said it will purchase only a prorated portion of the shares, other than odd-lot shareholders. The proration factor is expected to be 86.2%. The results are preliminary.

On May 9, Asset Acceptance Capital began its modified Dutch auction tender offer as part of a planned recapitalization to return $150 million to its shareholders. The company planned to repurchase up to 1,858,000 shares, plus an additional 2% of shares outstanding, priced between $18.25 and $20.00 per share, for a total of $75 million.

The company would also purchase shares from AAC Quad-C Investors LLC, chief executive officer Brad Bradley and chief financial officer Mark Redman, who collectively own 50.4% of the company's stock.

The Warren, Mich.-based purchaser and collector of charged-off consumer debt first announced its planned recapitalization on April 24.

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