By Lisa Kerner
Charlotte, N.C., Feb. 27 - Centro Properties Group entered into a definitive agreement for its affiliates to acquire New Plan Excel Realty Trust, Inc. for $33.15 per share cash in a transaction valued at approximately $6.2 billion, including assumption of debt and preferred stock.
The per share offer price is a 12.9% premium to New Plan's closing share price on Feb. 27 and a 12.3% premium to the stock's average closing price over the past 30 days, according to a company news release.
Centro said it will complete the acquisition through a cash tender offer expected to begin within 10 business days of the merger agreement.
New Plan's board unanimously approved the deal, which is slated to close in the second quarter of 2007. The company will pay its regular quarterly dividend of $0.3125 per share on its common stock for the first quarter of 2007.
Limited partners in Excel Realty Partners, LP, a New Plan subsidiary, will have the option to receive $33.15 per partnership unit or to remain as limited partners and receive newly issued preferred units.
"We have significantly repositioned New Plan over the past several years, recycling over $5 billion of capital and increasing the intrinsic value of our portfolio," New Plan chief executive officer Glenn J. Rufrano said in the release.
"Today's transaction recognizes the underlying value of our portfolio, in particular our operating platform, and accomplishes our ultimate objective of maximizing shareholder value."
New Plan is a New York real estate company.
Sydney, Australia-based Centro Properties specializes in the ownership, management and development of shopping centers.
| Acquirer: | Centro Properties Group
|
| Target: | New Plan Excel Realty Trust, Inc.
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| Transaction value: | $6.2 billion
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| Payment per share: | $33.15
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| Announcement date: | Feb. 28
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | NYSE: NX; $29.34 on Feb. 27
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