trending Market Intelligence /marketintelligence/en/news-insights/trending/T3Rc_56URfVAudoFUObyGQ2 content esgSubNav
In This List

Phillips Edison Grocery Center REIT III agrees to merge with sponsor

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Phillips Edison Grocery Center REIT III agrees to merge with sponsor

Phillips Edison Grocery Center REIT III Inc., or PECO III, reached a deal to merge with Phillips Edison & Co. Inc., or PECO, following its strategic review.

Under the terms of the deal, the weighted average merger consideration is $7.59 per share, based on PECO's most recent estimated net asset value per share of $11.10.

Once the merger takes effect, holders of PECO III class A common stock will receive 0.6693 PECO common share and 9.39 cents in cash per class A share they hold; holders of PECO III class I common stock will receive 0.7436 PECO common share and 9.41 cents in cash per class I share they hold; and holders of PECO III class T common stock will receive 0.7749 PECO common share and 9.89 cents in cash per class T share they hold. All stockholders will have the ability to receive additional shares of PECO common stock in lieu of the cash portion of the merger consideration.

The merger consideration, on an aggregate basis and for each of the class A, I and T shares, represents a substantial premium over both the $6.54 midpoint and the $6.88 high end of PECO III's estimated net asset value per-share range.

PECO III's special committee concluded that the proposed merger is the best available option for the company and its shareholders, citing relative valuation, timing and transaction cost considerations, according to a filing. Possible alternatives to the merger explored by PECO III's special committee included continuing to operate as a stand-alone entity, liquidation, or seeking a business combination with or sale of assets to another party.

The proposed merger has been approved by PECO III's special committee of independent directors and PECO's board.

PECO III, a nontraded real estate investment trust focused on grocery-anchored shopping centers, is co-sponsored by PECO and Griffin Capital Co. LLC. PECO III's adviser is jointly owned by affiliates of PECO and Griffin.