Why Is Blue Owl Board Urging Shareholders To Reject Minority Offer From Cox And Saba?

The company said that it believes the minority offer from Cox and Saba is an attempt to capture value at the expense of OBDC II shareholders.

• OWL said the offering price represents a discount of approximately 33.2% to net asset value, which is well below what the Board believes to be the potential long-term value of OBDC II shares.
• Blue Owl said in reaching its conclusion, the Board has consulted with members of management and its financial and legal advisors, and reviewed the terms and conditions of the offer.

Blue Owl Capital Corporation II (OBDC II) on Friday said that its Board of Directors has unanimously recommended that shareholders reject the unsolicited minority tender offer from Cox Capital Partners and Saba Capital Management for up to 8 million shares of OBDC II for approximately $30 million. 

The company said that it believes the minority offer from Cox and Saba is an attempt to capture value at the expense of OBDC II shareholders. The offering price represents a discount of approximately 33.2% to net asset value, which is well below what the Board believes to be the potential long-term value of OBDC II shares.

Blue Owl said in reaching its conclusion, the Board has consulted with members of management and its financial and legal advisors, reviewed the terms and conditions of the offer and has also considered other information related to the fund's historical financial performance, portfolio of assets and future opportunities.

Why To Reject?

The firm said that Cox and Saba's offer price is inadequate, arbitrary and substantially undervalues OBDC II's assets and ongoing access to liquidity. 

Tendering will prohibit OBDC II shareholders from receiving future distributions and realizing any appreciation in the value of their shares in the future, Blue Owl said in a statement. 

Cox And Saba Offer

Last month, Saba Capital and Cox Capital Partners announced cash tender offers for shares in business development companies (BDC) that are owned by Blue Owl. Cox and Saba at the time had said that the offer price was expected to be at a 20-35% discount to the most recent estimated net asset value and dividend reinvestment price. 

The tender offers came at a time when Blue Owl said that it will permanently stop allowing redemptions from Blue Owl Capital Corp. II, a semi-liquid private credit fund marketed to U.S. retail investors. 

How Did Stocktwits’ Users React?

Retail sentiment around OWL trended in ‘neural’ territory amid ‘low’ message volume. 

Shares in the company have fallen 41.5% so far in 2026.