The expiration of Annaly Capital Management's offer to purchase MTGE Investment Corp. was delayed until Sept. 7 so the two real estate investment trusts have more time to satisfy deal conditions.
"The offer will now expire at 7:00 a.m., Eastern Time, on Sept. 7, 2018, unless further extended in accordance with the terms of the merger agreement," Annaly said in a press release.
The two companies agreed to the $900 million deal in May. Under the terms of the agreement, Annaly will pay for the acquisition of MTGE with a mixture of cash and shares of its common stock. Both REITs invest in a mixture of residential and commercial assets.
MTGE shareholders may elect to receive in exchange for each share of common stock they hold either: a combination of $9.82 in cash and 0.9519 shares of Annaly's common stock, $19.65 in cash, or 1.9037 shares of Annaly common stock.
The shareholders that choose the all-cash and all-stock options are subject to proration such that half the aggregate consideration will be paid in cash, and half will be paid in stock.
Annaly has a history of striking deals to acquire companies during periods when mortgage rates are volatile, CEO Kevin Keyes noted during the company's second-quarter earnings call.
"We bought a
"When we see the market become more risky, that's when we can be the most opportunistic," Keyes added.
