By Dean Seal
Shares of Spirit Realty Capital jumped while shares of Realty Income slid after the two companies announced the latter would buy the former in an all-stock deal valued at $9.3 billion.
Spirit’s stock was up 9.5% at $35.44 in early trading. Shares have fallen about 11% year-to-date. Realty Income’s shares meanwhile fell 4.4% to $46.85. They have lost more than a quarter so far this year.
The real-estate investment trust’s shareholders are due to receive 0.762 shares of newly issued Realty shares for each share of Spirit that they own, Spirit and Realty said Monday morning. At closing, Realty Income’s existing shareholders would retain about 87% of the company and while Spirit shareholders would own the rest.
The deal is expected to close in the first quarter of 2024.
Write to Dean Seal at [email protected]
Read the full article here
