Companies move closer to finalizing merger deal
AG Mortgage Investment Trust (MIIT) has revealed more details on its acquisition of Western Asset Mortgage Capital (WMC), with the deal set to be finalized on November 9.
The real estate investment firms have determined a final exchange ratio of stock as part of their merger agreement initially announced two months ago. The companies have agreed that WMC stakeholders will receive 1.498 share of MITT common stock, equal to the lesser of $7 million or roughly 9.9% of the aggregate per share.
“Any difference between $7 million and such smaller amount will be used to benefit the combined company post-closing by offsetting reimbursable expenses that would otherwise be payable to MITT manager,” the companies said in a statement. “Cash will be paid in lieu of fractional shares of MITT common stock that would have been received as a result of the merger.”
Both companies’ boards have approved the merger of directors, but it remains subject to the approval of the common stockholders of both MITT and WMC.
WMC entered the merger deal with MIIT after scrapping its agreement with Terra Property Trust.
Read more: WMC scraps Terra Property deal, agrees to merge with AG Mortgage
“After careful consideration, the board, in consultation with its outside legal counsel and financial advisors, unanimously concluded that entering into the merger agreement with MITT is in the best interest of WMC’s stockholders,” WMC board chair James Hirschmann III said in a statement. “This combination will allow our stockholders to realize compelling value, and we are excited about what our companies can achieve together.”
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