Annaly Capital Management Shops Hatteras Financial For $1.5 Billion Cash And Stock

Annaly Capital Management, Inc. NLY revealed it signed a definitive deal with Hatteras Financial Corp. HTS to acquire it for $1.5 billion through cash and stock. According to the company, the deal is estimated to be accretive to the company's core earnings, as well as book value in the current year 2016.

Annaly Capital Management said it valued Hatteras shares at $15.85 a share, and the shareholders would get $5.55 in cash and 0.9894 shares of Annaly. The option is at the discretion of the shareholders. Any shareholder can also opt for full cash also, subject to a maximum of 35 percent of cash of the total deal. The offer represented a premium of about 24 percent to the 60-day average price.

Annaly CEO and President Kevin Keyes said, "This strategic transaction represents a unique and sizeable value creation opportunity for our shareholders. With the acquisition of Hatteras, we significantly grow our diversified portfolio and broaden our investment options, further fortifying Annaly's position as the market leading mortgage REIT."

The company's Chairman, Wellington Denahan, continued, "We are tremendously excited to announce this partnership today. Both Hatteras and Annaly are seasoned veterans in the sector, and we are confident this acquisition strengthens our ability to deliver superior returns to our shareholders over the long-term."

On Friday, Hatteras shares closed in the red with a loss of 0.56 percent while Annalay Capital ended with 0.53 percent gain.