Regency Centers Corp (NASDAQ:REG) announced the acquisition of Urstadt Biddle Properties Inc (NYSE:UBA) in an all-stock transaction for around $1.4 billion, including the assumption of debt and preferred stock.
As per the deal, UBA's common stockholders will receive 0.347 of a newly-issued REG share for each UBA or UBP share they own, representing around $20.40 per share, based on REG's closing share price on May 17, 2023. The price represents a premium of over 20% to UBA's May 17, 2023, closing price.
The combined company is expected to have a pro forma equity market capitalization of about $11 billion and a total enterprise value of around $16 billion.
The combined portfolio will comprise 481 total properties, containing over 56 million square feet of gross leasable area.
REG will own around 93% of the combined company post-deal closure, while UBA will own the rest.
The company expects the acquisition to be immediately accretive to core operating earnings, including annual cost-saving benefits of around $9 million.
The transaction is expected to close by late Q3 or early Q4 2023.
Lisa Palmer, President and CEO said, "The portfolio that Urstadt Biddle has carefully assembled over more than 50 years offers a highly aligned demographic and merchandising profile to Regency. Both companies have a successful track record of owning and operating best-in-class grocery-anchored neighbourhood and community centers in premier suburban trade areas, and we look forward to the synergies and growth opportunities that this transaction will offer to the combined shareholder base."
Price Action: UBA shares are trading higher by 18.7% at $20.12 on the last check Thursday.

Why Urstadt Biddle Properties Shares Are Jumping Today

Sign up free to keep reading