According to American Realty Capital Properties, it would acquire Cole Real Estate Investments for USD11.2 billion. A Reuters report said the consolidation of the two companies would create the largest net-lease real estate investment trust (REIT) in all of US.
American Realty said its recent acquisition would help the company increase its portfolio size to 3,732 properties.
The acquisition deal would have American Realty offering Cole 1.0929 of its shares or pay USD13.82 per Cole share. The value of the stock offer was at USD14.59 per share of Cole. This was a 14% premium of Cole's share at Tuesday's trading close.
American realty said it had secured from Barclays USD2.75 billion to finance its deal.
The acquisition deal would be finalized in the first half of next year. American Realty had tapped Barclays and RCS Capital as its financial advisors for the deal. Cole, on the other hand, hired Goldman Sachs as its financial adviser.
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