American Realty Capital Properties was acquiring American Realty Capital Trust IV. Their talks revolved around a cash-and-stock deal. According to sources, American Realty Capital Trust IV was worth US$3.1 billion.
On Tuesday, the shares of ARCP, a real estate investment trust, almost doubled in pre-market tradeoff.
ARCP shared that the agreement, together with their other latest negotiations, would make it the second-largest net lease REIT. ARCP would own 2,579 single tenant assets in 48 states and Puerto Rico as soon as the transaction finalized.
Every remaining share of ARCT IV would be converted to the right. This would allow it to receive 2.05% shares of ARCP stock equivalent to $30 each share in cash.
The companies' boards favoured the deal but it wasn't closed yet because of the pending approval of the companies' shareholders.
The buyout was anticipated to close by the end of third quarter.
ARCP's stock climbed up to $13.53, or 91.4%, to $28.33 before the market opened.
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