Kite Realty, Retail Properties to merge in $7.5 bln deal

0

A man inserts a U.S. dollar banknote into the window of a local currency exchange in Aden, Yemen June 29, 2021. Picture taken June 29, 2021. REUTERS/Fawaz Salman

  • Retail Properties of America Inc

    See all

The company and law firm names shown above are generated automatically based on the text of the article. We are improving this feature as we continue to test and develop in beta. We welcome feedback, which you can provide using the feedback tab on the right of the page.

July 19 (Reuters) – Kite Realty Group Trust (KRG.N) said on Monday it will buy rival Retail Properties of America Inc (RPAI.N) for about $2.8 billion to create one of the top five shopping center real estate investment trusts in the United States.

Retail Properties’ stock will be converted into 0.6230 newly issued Kite Realty shares in an all-stock deal, representing an offer price of $12.98 per share and implying a premium of about 13% to Retail Properties’ closing price on Friday.

The combined company is expected to have a market capitalization of about $4.6 billion and a total enterprise value of about $7.5 billion, Kite Realty said.

It also said the combination will create a portfolio of 185 open-air shopping centers comprising about 32 million square feet of gross leasable area.

Retail Properties would merge into a subsidiary of Kite Realty, with the latter continuing as the surviving company, following the close of the deal in the fourth quarter of 2021.

Reporting by Ankit Ajmera in Bengaluru; Editing by Ramakrishnan M. And Shinjini Ganguli

Read More

You might also like
Leave A Reply

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More