Two Major REITS in $2.15 Billion All-Stock Deal
The combined company will include 285 properties and some of its biggest markets will include Atlanta, Houston and Orlando, Fla.
Each Colonial share will be converted into a 0.36 of a share of MAA. At Friday's closing MAA price, that would be worth $24.46. That is an 11 percent premium over Colonial's closing price of $22.11 on Friday.
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The offer values Colonial shares at about $2.15 billion.
The transaction was unanimously approved by both companies' boards. It needs approval from a majority of both companies' shareholders.
The combined company will have corporate headquarters in Memphis, Tenn., where MAA is based.