Irvine’s California Coastal Communities Inc., under fire from shareholders over its plans to build homes at Bolsa Chica, made a peace offering Tuesday: an $11 to $13 per share dividend.
The company said it expects to pay the dividend within the next three months, once it completes a $125 million financing deal.
The dividend proposal comes a day after Connecticut-based Mercury Real Estate Advisors LLC, which owns about 9% of California Coastal, said it was voting against management’s directors and urged a sale of the company or its Bolsa Chica land in Huntington Beach.
Another shareholder, Mellon HB Alternative Strategies LLC, hired a consultant earlier this month to wage a proxy battle against California Coastal.
The two investors own about 20% of the company.
Both investors believe the Bolsa Chica land would be more valuable if California Coastal sold the development rights to a bigger developer.
California Coastal shot back Tuesday.
“Our board and management will continue to review any alternative that can enhance the value of our company to its stockholders,” Chief Executive Raymond Pacini said. “While certain short-term oriented hedge fund investors have lobbied publicly to force board action that they believe will best serve their limited self-interests, our board remains committed to actions that are in the best interests of all of our stockholders.”
After 30 years of environmental fights, California Coastal started initial work on Bolsa Chica this week.
