{"id":1004547605,"date":"2021-08-17T04:04:52","date_gmt":"2021-08-17T12:04:52","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004547605"},"modified":"2022-12-08T19:19:07","modified_gmt":"2022-12-09T03:19:07","slug":"equity-commonwealth-sweetens-offer-for-monmouth-merger-a-bit","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-sweetens-offer-for-monmouth-merger-a-bit\/","title":{"rendered":"Equity Commonwealth Sweetens Monmouth Merger Offer"},"content":{"rendered":"\n
\"\"
Sam Zell is Equity Commonwealth’s Chairman of the Board.<\/figcaption><\/figure><\/div>\n\n\n

Equity Commonwealth and Monmouth Real Estate Investment Corp. have amended their merger agreement, the companies announced Monday. As originally proposed in May<\/a>, the deal was to have been an all-stock transaction, with Monmouth shares valued at about $19.40 per share.<\/p>\n

Now, however, EQC has revised its offer to pay a total value of $19.00 per share in a combination of cash and stock at the election of Monmouth shareholders and based on EQC\u2019s closing price of $26.65 per share on Aug. 13.<\/p>\n

Total consideration for the transaction remains about $3.4 billion, including the assumption of $857 million of mortgage debt and repayment of the $550 million of Monmouth\u2019s 6.125 percent Series C Redeemable Preferred Stock and Monmouth\u2019s outstanding line of credit and term loan.<\/p>\n

\u201cThe new cash component provides greater certainty of value and an opportunity for liquidity for Monmouth\u2019s shareholders,\u201d according to a prepared statement. The amended offer increases the exchange ratio from 0.67 shares of EQC stock for every share of Monmouth stock to 0.713.<\/p>\n

\u201cOur 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,\u201d said David Helfand, EQC president, CEO and trustee. \u201cWe will continue to have significant balance sheet capacity, of over $4 billion, for future industrial investments.\u201d<\/p>\n

Both companies\u2019 boards have recommended approval of the merger by shareholders.<\/p>\n

Helfand will continue to lead the company, but the number of trustees on EQC\u2019s board will increase to 10, two of them designated by Monmouth. Sam Zell will remain EQC\u2019s chairman of the board.<\/p>\n

EQC and Monmouth shareholders are expected to own about 73 percent and 27 percent, respectively, of the pro forma company after the merger closes. That\u2019s in comparison with an approximately 65-35 split as originally estimated.<\/p>\n

Multiple suitors<\/h2>\n

Monmouth is one of the world\u2019s oldest public equity REITs and specializes in single-tenant, net-leased industrial properties subject to long-term leases, primarily to investment-grade tenants. Its portfolio includes 120 properties totaling 24.5 million square feet, across 31 states. Most of the facilities are Class A buildings near airports, seaports or transportation hubs.<\/p>\n

In July, Monmouth received an unsolicited acquisition offer<\/a> from a large private equity firm, reported to be Starwood Capital Group.<\/p>\n

Last December, prior to the EQC bid, Blackwells Capital LLC made an offer to buy Monmouth<\/a> for $18.00 per share in an all-cash deal. Complications arose, however, and Blackwells called for a review of the offer by a special committee of the Monmouth board, one excluding members of the Landy family. The offer was later rejected.<\/p>","protected":false},"excerpt":{"rendered":"

The total consideration for the deal remains unchanged at $3.4 billion. <\/p>\n","protected":false},"author":882,"featured_media":1004547676,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21748,21783,21742],"tags":[36999,33340],"class_list":["post-1004547605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-industrial","category-investment","category-latest","tag-equity-commonwealth","tag-monmouth-real-estate-investment-corporation"],"acf":[],"yoast_head":"\nEquity Commonwealth Sweetens Monmouth Merger Offer - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-sweetens-offer-for-monmouth-merger-a-bit\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Equity Commonwealth Sweetens Monmouth Merger Offer\" \/>\n<meta property=\"og:description\" content=\"The total consideration for the deal remains unchanged at $3.4 billion.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-sweetens-offer-for-monmouth-merger-a-bit\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-17T12:04:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T03:19:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2021\/08\/hands-3127297_1920.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"801\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-sweetens-offer-for-monmouth-merger-a-bit\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/equity-commonwealth-sweetens-offer-for-monmouth-merger-a-bit\/\",\"name\":\"Equity Commonwealth Sweetens Monmouth Merger Offer - 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