Deal could lead to proposal superior to Terra Property’s all-stock merger offer
Western Asset Mortgage Capital (WMC) is considering a counteroffer from AG Mortgage Investment Trust after agreeing to merge with Terra Property Trust in an all-stock transaction.
WMC said on Tuesday that its board had discussed with financial advisers and legal advisers the merits of AG Mortgage’s unsolicited proposal to acquire WMC. The board deliberated that the offer is “reasonably expected” to result in a superior proposal to WMC’s merger deal with Terra Property Trust (TPT).
AG Mortgage made the counteroffer last week to acquire WMC for an implied price of $9.88 per share, consisting of stock consideration of $8.90 per share and cash consideration of $0.98 per share.
Learn more: AG Mortgage Investment Trust proposes to acquire Western Asset Mortgage
“Following the decision of WMC’s board of directors, WMC intends to enter into discussions with MITT regarding its proposal, pursuant to the terms of the merger agreement with TPT,” WMC said in its statement. Press release.
WMC said its all-stock merger transaction with TPT remains “in full effect,” and there can be no assurance that talks with AG will result in a transaction. Under the terms of the agreement, Terra has the right to match the parent’s superior proposal.
Want to keep up to date with the latest mortgage news? Get exclusive interviews, breaking news and industry happenings delivered to your inbox, and always be the first informed by subscribing to our FREE daily newsletter.