MCG CAPITAL CORP. INVESTOR ALERT: Faruqi & Faruqi, LLP Announces the Investigation of MCG Capital Corp. Over the Proposed Sale of the Company to PennantPark Floating Rate Capital Ltd. - MCGC
April 30, 2015 – Juan E. Monteverde, a partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of MCG Capital Corp. (“MCG Capital” or the “Company”) (Nasdaq: MCGC) for potential breaches of fiduciary duties in connection with the sale of the Company to PennantPark Floating Rate Capital Ltd. (“PennantPark”) (Nasdaq: PFLT) for approximately $175 million in a cash and stock transaction. The Company’s stockholders will receive $4.521 in PennantPark shares, as well as $0.226 in cash for each share of MCG Capital common stock they own. The deal values each share of MCG Capital at around $4.75 for each share, which represents a premium of about 15.8% to MCG Capital’s April 28, 2015 closing price.
The investigation focuses on whether MCG Capital’s Board of Directors breached their fiduciary duties to the Company’s stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the Company to the detriment of MCG Capital’s shareholders.
If you own common stock in MCG Capital and wish to obtain additional information and protect your investments free of charge, please contact Juan E. Monteverde, Esq. either via e-mail at firstname.lastname@example.org or by telephone at (877) 247-4292 or (212) 983-9330.
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Faruqi & Faruqi, LLP
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Tel: (212) 983-9330
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