Ares Management to Buy Whitestone REIT for 1.7 Billion
Ares Management will acquire Whitestone REIT in a 1.7 billion dollar deal. The move follows activist pressure and is expected to close later this year.
WHITESTONE REIT announced on Thursday that it will be acquired by funds managed by ARES MANAGEMENT CORP - A in an all-cash transaction valuing the firm at approximately $1.7 billion. Under the terms of the agreement, Ares will acquire all outstanding common shares and operating partnership units for $19 per share, representing a 12.2% premium to the company's closing price on Wednesday. The move will take the United States shopping center owner private.
Following the announcement, shares of Whitestone REIT surged 11.5% to reach a record high of $18.90 in early trading, while shares of Ares Management saw a decline of more than 1%. The acquisition follows months of takeover interest and significant shareholder pressure, as private equity firms increasingly target neighborhood retail properties in high-growth markets. Major firms including BLACKSTONE INC and TPG INC had previously expressed interest in acquiring the REIT earlier this year.
