On Monday Annaly Capital Management, Inc. (NLY) announced that it has put forth a proposal to acquire CreXus Investment Corp (CXS).
The proposal states that Annaly would purchase with cash the remaining outstanding stock of CreXus that is does not already own. Annaly currently owns about 12.4% (9.5 million) of the 76.6 million outstanding shares of common stock of CreXus.
Annaly would pay $12.50 per share in the deal. That is a +12.6% premium on the $11.10 share price that CXS closed at on Friday.
The potential acquisition has been made as Annaly seeks to diversify its investments.
“While we remain committed to the agency market, given the current environment, we believe it is prudent to diversify a portion of our investment portfolio,” Annaly Chief Executive Wellington Denahan said. “Therefore, we may allocate up to 25% of our shareholders’ equity to real estate assets other than agency mortgage-backed securities.”
The deal has only been put forth to the Board of Directors of CreXus and is still subject to approval.
Annaly shares were up 8 cents, or +0.53%, in premarket trading on Monday. CreXus shares were up $1.45, or +13.06%.
Annaly Capital Management, Inc. (NLY) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars. CreXus Investment Corp (CXS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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