Gramercy Property Trust (NYSE: GPT) rose 13.4% to $27.01 after the company agreed to be acquired by Blackstone Group L.P. (NYSE: BX) for $27.50 per share.
The transaction has been unanimously approved by Gramercy’s Board of Trustees and represents a premium of 23% over the 30-day volume-weighted average share price ending May 4, and a premium of 15% over the closing stock price on May 4
Commenting on the acquisition, CEO Gordon DuGan said, "I speak for the entire team at Gramercy to say that we are very pleased to enter into this transaction. We believe this validates the quality of the portfolio and platform that we have built. Entering into this transaction with Blackstone fulfills our Board of Trustees’ mission to maximize shareholder value.”
Completion of the transaction, which is currently expected to occur in the second half of 2018, is contingent upon customary closing conditions, including the approval of Gramercy's shareholders, who will vote on the transaction at a special meeting on a date to be announced. The transaction is not contingent on receipt of financing by Blackstone.
Gramercy shareholders will be entitled to receive the previously announced second quarter dividend of $0.375 per share payable on July 16, and if the transaction is completed after October 15, Gramercy shareholders will receive a per diem amount of approximately $0.004 per share for each day from October 15, until (but not including) the closing date.
Gramercy stock galloped $3.69, or 15.5% to $27.51, while Blackstone inched up 2.9 cents to $31.84.
