Equity Commonwealth Adds Cash to Monmouth Real Estate Deal

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Dave Sebastian

Monmouth Real Estate Investment Corp. said it agreed to the revised Equity Commonwealth proposal that adds a cash component.

Chicago-based Equity Commonwealth said it agreed to pay $ 19 per share in cash and stock in the Monmouth shareholder election, based on Friday’s closing price of $ 26.65 per share. The companies said Monday that Monmouth shareholders could receive either $ 19 per share in cash or 0.713 shares of Commonwealth Equity per share in Monmouth as part of the deal.

The companies said the deal had a total consideration of $ 3.4 billion, including an anticipated payment of $ 857 million in mortgage debt and redeemable Series C Monmouth preferred shares, as well as outstanding line of credit and a term loan.

In May, the companies negotiated a stock deal worth approximately $ 3.4 billion, including the takeover of debt.

The companies expect the deal to close on September 9th.

Last month, Starwood Capital Group made a revised offer to buy Monmouth at $ 19.51 a share, or $ 18.88 a share, with a $ 62.2 million termination payment to Equity Commonwealth.

Email Dave Sebastian at dave.sebastian@wsj.com

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