Market Overview

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

Share:

Annaly Capital Management, Inc. (NYSE: NLY) revealed it signed a definitive deal with Hatteras Financial Corp. (NYSE: 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.

Posted-In: News Asset Sales Press Releases

 

Related Articles (HTS + NLY)

View Comments and Join the Discussion!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Ashford Hospitality Issues Letter on Activist Investor, Sessa Capital

Hercules Capital Fulfills $220.9 Million Debt And Equity Commitments In Q1