WMC - Western Asset Mortgage to start merger talks with AG Mortgage Investment

2023-07-18 17:09:07 ET

Western Asset Mortgage Capital ( NYSE: WMC ) will start talks with AG Mortgage Investment Trust ( NYSE: MITT ) because AG Mortgage's unsolicited proposal is "reasonably expected" to result in a superior proposal to Terra Property Trust's merger agreement with WMC, WMC said Tuesday.

Western Asset Mortgage ( WMC ) stock climbed 3.3% in after-hours trading. AG Mortgage ( MITT ) shares rose 1.1% .

On July 13, 2023, Western Asset Mortgage ( WMC ) received a non-binding proposal from AG Mortgage ( MITT ) to acquire WMC under which AG would pay 1.468 shares of MITT common stock and a per-share portion of an aggregate cash payment from MITT's external manager equal to either $7.0M or ~9.9% of the aggregate per-share merger consideration, whichever is less.

Western Asset Mortgage's ( WMC ) merger agreement with Terra Property Trust remains in effect, and the WMC board has not withdrawn or modified its recommendation regarding the pending merger.

Under the terms of that agreement, Terra Property Trust has the right to match a superior proposal. WMC said there's no assurance the talks with AG Mortgage ( MITT ) will result in a transaction.

On June 28, Western Asset Mortgage ( WMC ) agreed to merge with Terra Property Trust in an all-stock transaction.

For further details see: