Mortgage REIT M&A: Apollo Commercial to acquire Apollo Residential Mortgage

• It was only a matter a time given the massive discounts to book value in the sector. Apollo Commercial Real Estate (NYSE:ARI) is buying Apollo Residential Mortgage (AMTG) for $14.59 per share. It's a hefty premium to last night's close of $10.13, but well below AMTG's just-reported end-of-year book value of $16.40.
• Consideration: AMTG owners will receive about $7.53 in cash and 0.417 shares of ARI for each share of AMTG they hold. The cash portion is subject to change based on changes in AMTG's book value.
• The deal is expected to be accretive to ARI's BVPS this year (how could it not be).
• Source: Press Release
• ETFs: MORL, REM, MORT, LMBS