Starwood (STWD) Makes Bid for CreXus (CXS) in Stock Transaction Valued at $14/Share
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Starwood Property Trust (NYSE: STWD) has made a $14.00 per outstanding share bid for CreXus Investment Corp. (NYSE: CXS).
Terms of the proposed transaction call for Starwood Property Trust to exchange 0.61 shares of its common stock for each share of CreXus common stock outstanding.
Barry Sternlicht, Chairman and Chief Executive Officer of the Company, stated, "We believe our offer, which is at a substantial premium to CreXus' current stock price and above virtually all of CreXus' trading prices since its initial public offering in September 2009, represents a compelling opportunity for CreXus' stockholders. CreXus stockholders would receive stock in a significantly more liquid entity without facing the substantial book value dilution of CreXus' pending equity offering. In addition, the combination of the platforms will be accretive to STWD's earnings, provide the potential for higher dividends for STWD and CreXus shareholders and allow shareholders of both companies to share in the cost savings and accretion created by the combination. This transaction will further increase the size of STWD's portfolio and further diversify our asset base, while providing economies of scale from a financing perspective."
Terms of the proposed transaction call for Starwood Property Trust to exchange 0.61 shares of its common stock for each share of CreXus common stock outstanding.
Barry Sternlicht, Chairman and Chief Executive Officer of the Company, stated, "We believe our offer, which is at a substantial premium to CreXus' current stock price and above virtually all of CreXus' trading prices since its initial public offering in September 2009, represents a compelling opportunity for CreXus' stockholders. CreXus stockholders would receive stock in a significantly more liquid entity without facing the substantial book value dilution of CreXus' pending equity offering. In addition, the combination of the platforms will be accretive to STWD's earnings, provide the potential for higher dividends for STWD and CreXus shareholders and allow shareholders of both companies to share in the cost savings and accretion created by the combination. This transaction will further increase the size of STWD's portfolio and further diversify our asset base, while providing economies of scale from a financing perspective."
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