Mid-America Apartment to acquire rival for $4bn

Mid-America Apartment Communities announced the acquisition of rival Post Properties in all-cash tax-deferred deal.

Under the terms of the transaction, which valued the latter at just under $4bn, shareholders in Post Properties were to receive 0.71 shares of new Mid-America Apartment stock.

That equated to an offer price of about $72.53, for a 17% premium, valuing Post Properties at approximately $3.9bn and give shareholders in Mid-America roughly 68% of the combined $12.0bn-company.

David P. Stockert, Post's CEO and President: "Post shareholders are receiving an attractive value for our assets and business and a 24% increase in the dividend, while preserving the continuing opportunity to participate in the combined company's ongoing success."

Together, the real estate investment trusts would own 105,000 apartment units, spread over 317 properties, turnng it into the largest in the US on the basis of the number of apartments owned, Mid-America said in a statement.

The combined firm's ten largest markets were all located on the eastern and southern coasts of the US.

Approximately $20m of annual synergies were seen accruing to the new outfit as a result of the tie-up.

The resulting business was to retain the MAA name and would continue to trade under the same ticker symbol on the NYSE, MAA.

As of 13:39 BST shares in Mid-America were lower by 3.13% t0 $102.15 and those of Post by 12.25% to $62.22.