Starwood Property (STWD) announced that it has made an unconditional offer to acquire all of the outstanding shares of common stock of CreXus Investment Corp. (CXS) for $14.00 per share. The proposal was formally made today in a letter to the CreXus Board of Directors. Terms of the proposed transaction call for Starwood Property Trust to exchange 0.61 shares of its common stock for each share of CreXus common stock outstanding. The company’s offer is not subject to any financing condition, but is contingent on CreXus suspending its current equity offering. Starwood Property Trust is not aware of any material governmental or third party approvals or filings that would be required to consummate the transaction and the transaction will not require the vote of Starwood Property Trust’s shareholders.
Barry Sternlicht, Chairman and Chief Executive Officer of the Company, stated, “We believe our offer, which is at a substantial premium to CreXus’ current stock price and above virtually all of CreXus’ trading prices since its initial public offering in September 2009, represents a compelling opportunity for CreXus’ stockholders.”
Crexus lost 11 cents, or 0.92%, to $11.85 at 11:47 E.T. in New York Stock Exchange trading.
Update: CreXus Board votes to reject offer from Starwood Property
The Board of Directors of CreXus Investment Corp. announces that after evaluating the unsolicited offer from Starwood Property Trust to acquire the outstanding shares of CreXus, it voted to reject the offer. As previously announced, CreXus is proceeding with its common stock offerings, the proceeds of which will be used primarily to fund the acquisition of a portfolio of $586 million of commercial real estate assets from Barclays Capital Real Estate Finance.