Seeking Alpha

Colony Financial, Inc. (CLNY)

  • Mon, Sep. 21, 10:18 AM
    • Starwood Waypoint (SWAY +9.3%) is sharply higher after announcing its merger with Colony Capital's (CLNY +2.7%) Colony American Homes.
    • With M&A (and the quick scale-up and cost savings that come with it) in the air, Silver Bay Realty (SBY +1.7%), American Homes 4 Rent (AMH +2.6%), and American Residential Properties (ARPI +2.2%) are also on the move.
    | Mon, Sep. 21, 10:18 AM | Comment!
  • Mon, Sep. 21, 7:37 AM
    • Unable to pull off an IPO of its single-family rental operation, Colony Capital (NYSE:CLNY) engineers a pseudo-IPO by merging Colony American Homes with Starwood Waypoint (NYSE:SWAY).
    • CAH shareholders will receive 64.9M shares of SWAY in exchange for 100% of the stock of CAH. After the deal, CAH shareholders will own about 59% of the combined company's shares. The $0.19 dividend is expected to be maintained.
    • Barry Sternlicht and Thomas Barrack will serve as non-executive co-chairmen of the board, while President and COO of CAH Fred Tuomi will be CEO. SWAY CEO Doug Brien will be president and COO.
    • The combined company will own and manage (management will be internalized as part of the merger) more than 30K homes with a total asset value of $7.7B. The deal is expected to achieve annualized cost savings of $40M-$50M.
    • A conference call is set for 9 ET
    • Source: Press Release
    | Mon, Sep. 21, 7:37 AM | Comment!
Company Description
Colony Capital Inc is a real estate & investment management company. It acquires, invests, finances & manages a diversified portfolio of real estate-related debt & equity investments composed of acquired & originated loans.
Sector: Financial
Country: United States