Annaly Capital Management Inc., a New York-based real estate investment trust, has sent a proposal to the board of directors of Crexus Investment Corp. to acquire for cash all of the shares of Crexus that Annaly does not currently own.
Crexus has approximately 76.6 million shares of common stock outstanding. Under the terms of the proposal, Annaly would acquire all the Crexus shares it does not already own for $12.50 per share in cash. Annaly owns approximately 9.5 million shares, or about 12.4% of Crexus' common stock outstanding.
‘Annaly has been analyzing alternatives with respect to the Crexus commercial real estate-related investment business, and believes it could be beneficial to all constituents for Annaly to acquire the 87.6% of Crexus that it does not currently own,’ says the REIT in its letter to the Crexus board.
Annaly adds that because its subsidiary Fixed Income Discount Advisory Co. (FIDAC) manages Crexus, and two employees of FIDAC are on Crexus' board of directors, Crexus' should create a special committee consisting entirely of directors who are independent of Annaly to consider the proposal negotiate the terms of any transaction resulting from that proposal.
New York-based Crexus is a specialty finance company that acquires, manages and finances commercial mortgage loans and other commercial real estate debt, commercial mortgage-backed securities and other related assets.