RPAI - Retail Properties of America stock jumps 8% on $7.5B merger deal with Kite Realty

Kwarkot/iStock via Getty Images Kite Realty Group Trust (KRG) and Retail Properties of America (RPAI), up 8.4% premarket have entered into a merger agreement under which RPAI would combine with a subsidiary of KRG, with KRG continuing as the surviving public company. The combined company is expected to have an equity market capitalization of ~$4.6B and a total enterprise value of ~$7.5B. Under the terms of the agreement, each RPAI common share will be converted into 0.6230 newly issued KRG common shares in a 100% stock-for-stock transaction. KRG and RPAI shareholders are expected to own ~40% and ~60% of the combined company's equity, respectively and KRG anticipates assuming all RPAI debt. This strategic deal will create top five shopping center REIT by enterprise value, and is expected to provide a runway to increase long-term value for shareholders. The transaction is expected to close during Q4 2021. The merger will create an operating portfolio of 185

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Retail Properties of America stock jumps 8% on $7.5B merger deal with Kite Realty