REIT Annaly Capital Management announced today that it has agreed to acquire the remaining shares of CreXus Investment for $13 per share -- up from a previous offer of $12.50 -- for a total value of $872 million. Annaly currently owns approximately 12.4% of CreXus, and says it will purchase all remaining shares for $13 per share plus a prorated dividend payment.
The announcement pushed shares up to $13.28 as of this writing, a 6.2% premium over yesterday's $12.50 closing price.
Annaly had proposed a $12.50-per-share buyout on Nov. 9. The terms announced today stem from negotiations between Annaly and CreXus, and the $13 per share represents a 17% premium to Crexus' stock price before Annaly's initial acquisition proposal.
"This transaction represents a significant step toward Annaly's commitment to investing directly in commercial real estate assets," said Chairman and CEO Wellington Denahan in a statement today. "We believe that wholly owning the commercial real estate platform we currently manage through [Fixed Income Discount Advisory Company] is complementary to our existing business and return profile and should provide stable and diversified risk-adjusted returns to our shareholders."
CreXus has 45 days in which to solicit and evaluate other offers.
The all-cash offer is part of Annaly's larger capital allocation strategy, and is aimed at helping to scale the company's commercial platform while diversifying its investment portfolio.
The article Annaly Ups Offer for Rest of CreXus originally appeared on Fool.com.
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