AV Homes, Inc. (NASDAQ: AVHI) shares rose Thursday trading after Taylor Morrison Home Corporation (NYSE: TMHC) agreed to acquire AV Homes at $21.50 per share in cash and stock.
Taylor Morrison), a leading national homebuilder and developer, and AV Homes, a developer and builder of residential communities in Florida, the Carolinas, Arizona and Texas, today announced that they have entered into a definitive agreement pursuant to which Taylor Morrison will acquire all of the outstanding shares of AV Homes common stock at $21.50 per share in a cash and stock transaction valued (including outstanding AV Homes debt) at approximately $963 million.
The transaction is expected to close late in the third quarter or early in the fourth quarter of 2018 and the closing is subject to customary closing conditions. TPG Capital, the holder of approximately 40% of AV Homes common stock, has agreed to vote all of its shares of AV Homes common stock in favor of the transaction.
Under the terms of the agreement, AV Homes stockholders will have the option to receive, at their election, consideration per share equal to (i) $21.50 in cash, (ii) 0.9793 shares of Taylor Morrison Class A common stock or (iii) the combination of $12.64 in cash and 0.4034 shares of Taylor Morrison Class A common stock, subject to an overall proration of approximately 60% cash and 40% stock. On a pro forma basis, AV Homes stockholders are expected to own up to approximately 10% of the combined company.
AV shares galloped $4.83, or 29.2%, to $21.33, while Taylor Morrison shares slipped 46 cents, or 2.1%, to $21.58
Related Stories
