REIT Annaly Capital Management (NYSE: NLY ) announced today that it has agreed to acquire the remaining shares of CreXus Investment (NYSE: CXS.DL ) for $13 per share -- up from a previous offer of $12.50 -- for a total value of $872 million. Annaly currently owns approximately 12.4% of CreXus, and says it will purchase all remaining shares for $13 per share plus a prorated dividend payment.
The announcement pushed shares up to $13.28 as of this writing, a 6.2% premium over yesterday's $12.50 closing price.
Annaly had proposed a $12.50-per-share buyout on Nov. 9. The terms announced today stem from negotiations between Annaly and CreXus, and the $13 per share represents a 17% premium to Crexus' stock price before Annaly's initial acquisition proposal.
"This transaction represents a significant step toward Annaly's commitment to investing directly in commercial real estate assets," said Chairman and CEO Wellington Denahan in a statement today. "We believe that wholly owning the commercial real estate platform we currently manage through [Fixed Income Discount Advisory Company] is complementary to our existing business and return profile and should provide stable and diversified risk-adjusted returns to our shareholders."
CreXus has 45 days in which to solicit and evaluate other offers.
The all-cash offer is part of Annaly's larger capital allocation strategy, and is aimed at helping to scale the company's commercial platform while diversifying its investment portfolio.