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Equity Commonwealth Adds Cash Component to $3.4B Bid for Monmouth REIT
Equity Commonwealth (EQC) on Monday sweetened its offer for industrial REIT Monmouth Real Estate Investment Corporation, adding a cash component to its previous all-stock offer. The amendment to the merger agreement follows Starwood Capital Group’s rival bid for Monmouth as well as advisory firm ISS’ recommendation that Monmouth shareholders vote against the combination.
“Our revised offer provides Monmouth shareholders with the option to elect to receive consideration in cash, but also provides a tax-deferred option to remain invested in the future upside of our business,” said David Helfand, president and CEO of EQC. “We will continue to have significant balance sheet capacity, of over $4 billion, for future industrial investments.”
Total consideration for the transaction is $3.4 billion, including the assumption of $857 million of mortgage debt, and repayment of the $550 million of Monmouth’s 6.125% Series C Redeemable Preferred Stock and Monmouth’s outstanding line of credit and term loan.
- ◦Sale/Acquisition
