The vote on Realogy's (NYSE:H) buyout by Apollo Management, LP is scheduled for March 30, and assuming shareholders approve it, the deal is expected to close in early to mid-April.
Given the current softness in the market, particularly anything associated with residential real estate, it's very likely that the deal will go through. We think a private equity buyer is less likely to get skittish than if Realogy were being purchased by a peer.
Realogy shares, however, were off 2% yesterday, in-line with the market, and it looks like there is an opportunity to scoop up some spare change.
Realogy shares are trading at $28.85. Should the deal go through, buyers will earn the $1.15 difference, around 4%. Assuming the deal closes in a month, that comes to nearly 60% annualized.
Of course, should the deal fall through, shares would likely tank.
Disclosure: We own shares of Realogy.
H 8 month chart: