KBS Strategic Opportunity REIT Inc. agreed to acquire single-family rental property company Reven Housing REIT Inc. in cash for aggregate consideration of roughly $56.9 million.
Reven announced in March that it was exploring strategic alternatives.
The per-share consideration payable to Reven stockholders is expected to be $5.15, reflecting a roughly 21% premium to its unaffected closing stock price of $4.25 as of Aug. 29. The aggregate consideration may be increased or decreased depending on the difference between the amount of Reven's unrestricted cash available for distribution at the closing of the merger and $6.5 million.
Each unvested Reven restricted stock award will become fully vested and be automatically converted into the right to receive the per-share merger consideration for each share of Reven common stock underlying the award at the effective time of the merger.
The respective boards of KBS Strategic Opportunity REIT and Reven have unanimously approved the merger, which is subject to approval by a majority of Reven stockholders.
The merger is expected to close by the end of October, subject to closing conditions.
RBC Capital Markets LLC served as financial adviser to Reven, with Greenberg Traurig LLP as its legal counsel.
DLA Piper LLP (US) served as legal counsel to KBS Strategic Opportunity REIT.
