|
Lennar's offer of $23.50 per share – half in cash and half in
stock – represents a premium of about 37 percent to WCI's
Wednesday close. WCI shares rose to $23.50 premarket on
Thursday.
Lennar, which mainly caters to buyers looking for a second home,
while WCI calls itself a lifestyle community developer and
builds single-family and multi-family luxury homes, including
luxury high-rise towers.
"WCI's land portfolio dovetails perfectly with our own Florida
footprint and expands our product offering to capture more of
the move-up market," Lennar Chief Executive Stuart Miller said
in a statement.
The transaction, which would be in the form of a merger between
WCI and a newly formed Lennar unit, gives WCI an enterprise
value of $809 million, Lennar said.
WCI said the merger agreement gave it 35 days to shop for a
higher offer.
Lennar said it had the option of increasing the cash portion of
the offer, including paying the full amount in cash.
WCI's financial advisers are Credit Suisse and Citigroup Global
Markets Inc and its legal advisers are Latham & Watkins LLP.
Lennar's legal adviser is Goodwin Procter LLP and Gibson Dunn &
Crutcher LLP is its special tax counsel.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Savio
D'Souza)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
