Los Angeles-based Calmark Holding Corp. on Wednesday completed its previously announced, $52.8-million acquisition of Northview Corp., the San Diego-based company that operates the Vagabond Inn hotel chain.
Northview will continue to operate from its headquarters in San Diego, according to a Calmark spokesman. Northview earlier this year cut its last remaining ties with arbitrageur Ivan Boesky, who was convicted of trading stocks on inside information.
Calmark acquired 99.8% of Northview’s stock at $22 per share during a recently completed tender offer. Northview had traded around $10 before Calmark announced Nov. 10 that it would acquire the San Diego company.
On Monday, a Los Angeles Superior Court judge denied a dissident Northview shareholder’s request that Calmark’s acquisition of Northview be halted. The lawsuit alleged that Calmark was not paying a fair price for Northview’s shares. Calmark is “uncertain where that suit now stands,” according to the spokesman.
Northview owns and operates 43 Vagabond hotels in California and other Sun Belt states. Calmark develops, manages and syndicates multifamily residential properties. Uri Sheinbaum will serve as Northview’s new chairman of the board and Donald Brumlik will serve as president. Sheinbaum and Brumlik are Calmark executives.
Northview reported a $3.4-million net loss and $19.8 million in revenue for the first half ended June 30. The company expects to report additional losses during the remainder of the year because of interest payments on the company’s $100-million debt. That debt load includes $70 million in 15% subordinated debentures floated to finance Boesky’s stock-trading activities.