Deal could lead to a superior proposal to Terra Property's all-stock merger bid
Western Asset Mortgage Capital (WMC) is considering a counter bid from AG Mortgage Investment Trust after agreeing to merge with Terra Property Trust in an all-stock deal.
WMC said Tuesday that its board of directors has discussed with financial advisors and legal counsel the upside of AG Mortgage's unsolicited proposal to acquire WMC. The board has deliberated that the offer is "reasonably expected" to result in a superior proposal to WMC's merger agreement with Terra Property Trust (TPT).
AG Mortgage last week made the counteroffer to acquire WMC for an implied price of $9.88 per share, consisting of a stock consideration of $8.90 a share and cash consideration of $0.98 a share.
Read more: AG Mortgage Investment Trust bids to acquire Western Asset Mortgage
"As a result of the WMC board's determination, WMC intends to engage in discussions with MITT regarding its proposal, in accordance with the terms of the merger agreement with TPT," WMC said in its press release.
WMC said its all-stock merger transaction with TPT remains in "full force and effect," and there's no assurance the talks with AG will result in a transaction. Under the terms of the agreement, Terra has the right to match the parent superior proposal.
Want to keep up with the latest mortgage news? Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
