Bluerock Residential shares soar 75% after Blackstone agrees to $3.6B deal
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- Shares of Bluerock Residential Growth REIT (NYSE:BRG) surge more than 70% in pre-market trading after the company agrees to be sold to private equity giant Blackstone (NYSE:BX) in a $3.6B deal.
- Specifically, Blackstone (BX) will buy all outstanding shares of common stock of BRG for $24.25 per share in an all-cash transaction valued at $3.6B.
- Last week, BRG was trading below $16 per share, now changing hands at nearly $27.50. Meanwhile, BX shares slide 2.5%.
- Under the terms of the agreement, Blackstone (BX) will acquire 30 multifamily properties comprising ~11K units, as well as a loan book secured by 24 multifamily assets, the company says.
- Prior to the acquisition, Bluerock (BRG) intends to spin off its single-family rental business to a newly formed real estate investment trust, Bluerock Homes Trust (NYSE:BHM).
- The deal is expected to close in Q2 of 2022.
- Previously, (Sep. 16) Bluerock Residential explored its strategic options.
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Comments (33)
what will happen to brg-c?
@jackmergen Both C and D have change of control provisions and I think if they do not elect to call them upon acquisition, C shareholders will have the right to put them back... So given C has been callable since July one might consider the likely circumstance is that an immediate call may be off the table UNTIL the acquistion is completed. There's nothing preventing them from calling now but it's likely the acquisition places a call in limbo until. Upon the occurrence of a Change of Control/Delisting (as defined below), we may, at our option, redeem the Series C Preferred Stock in whole or in part within 120 days after the first date on which such Change of Control/Delisting occurred, solely in cash at a redemption price of $25.00 per share, plus an amount equal to all accrued but unpaid dividends, if any, to and including the redemption date.
Why did it went up today from the bottom? Wanted to buy some
@jackmaster20 It's Blackstone, not Blackrock... And market price is not above the total anticipated proceeds when you include the spinoff that shareholders receive with an anticipated NAV around 5.60/share
LOL, well that's why you limit position sizing.
Had sold both the 10$ Puts and 15$ Calls for Jan, luckily 50% more on the Puts side and only 1/3 of the position goes away that cheap with the Calls. With a 8.44$ cost on those 15.44$ nets, I am still not crying. I will stick to see what the yield will be on the housing part on the rest of the shares and defer the gain till next year.
Had sold both the 10$ Puts and 15$ Calls for Jan, luckily 50% more on the Puts side and only 1/3 of the position goes away that cheap with the Calls. With a 8.44$ cost on those 15.44$ nets, I am still not crying. I will stick to see what the yield will be on the housing part on the rest of the shares and defer the gain till next year.
