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Mortgage REITs Two Harbors, CYS in M&A Deal
Mortgage REITs Two Harbors Investment Corp. and CYS Investments, both headquartered in New York, have agreed to a stock-for-stock merger that values CYS at about $1.2 billion. The combined company would have a pro forma equity base of nearly $5 billion.
Two Harbors CEO Thomas Siering said Thursday that the merger “offers Two Harbors stockholders the opportunity to benefit from additional capital, supporting continued growth in our target assets, as well as an improved cost structure. The combination of the two companies also supports the potential for the premium valuation of a pro forma Two Harbors.”
Completion of the merger is subject to approval by stockholders in both companies. The transaction is expected to close in the third quarter of 2018.
The mortgage REIT sector has seen a number of consolidations in recent years, including a combination of Colony NorthStar and two NorthStar entities last August.
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