REIT becomes second-largest stockholder of rival bidder
In a surprising turn of events, Terra Property Trust (TPT) has acquired 5.2% of the outstanding shares of AG Mortgage Investment Trust (MITT), which last week made a counteroffer against TPT in its bid to snatch up Western Asset Mortgage Capital.
The move makes TPT the second-largest stockholder of MITT, with a larger stake in MITT than its external manager (Angelo Gordon).
“TPT believes MITT is undervalued and intends to consider all options to unlock value in a constructive manner for MITT stockholders, including, without limitation, a strategic combination involving MITT,” Terra Property said in its news release.
TPT said it plans to discuss with MITT’s board of directors, stockholders, and other third parties “strategic alternatives and direction and suggestions for improving its financial and/or operational performance.”
Read more: Western Asset Mortgage Capital, Terra Property Trust share merger plans
The transaction also gives TPT the power to “take other steps seeking to bring about changes to increase value for MITT stockholders.”
As previously reported by MPA, AG Mortgage has made an unsolicited bid for Western Asset Mortgage, offering a cash consideration with an implied price of $9.88 per share. While Terra Property’s offer doesn’t include cash, it agreed to pay Western $15.40 per share.
“TPT remains firmly committed to completing the merger contemplated by its executed merger agreement with Western Asset Mortgage Capital Corporation in the fourth quarter of 2023,” the REIT noted.
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