RPT Realty (NYSE:RPT) rallied Monday on news RPT is being acquired by Kimco Realty for $2 billion in stock. The deal is expected to close in early 2024. “Approximately 70% of RPT’s portfolio aligns with our key strategic markets,” Kimco CEO Conor Flynn said in a statement.
Kimco Realty (NYSE: KIM) is North America’s largest publicly traded owner and operator of open-air, grocery-anchored shopping centers and a growing portfolio of mixed-use assets. Upon closing, Kimco expects to have a pro forma equity market capitalization of approximately $13 billion and a total enterprise value of approximately $22 billion.
Under the terms of the merger agreement, RPT shareholders will receive 0.6049 of a newly-issued Kimco share for each RPT share they own, representing a total consideration of approximately $11.34 per RPT share based on Kimco’s closing share price on August 25, 2023. This represents a 19% premium to RPT’s closing share price on August 25, 2023. At closing, Kimco stockholders and RPT shareholders are expected to own approximately 92% and 8% of the combined company, respectively. The board of directors of Kimco and the board of trustees of RPT both unanimously approved the transaction. The transaction is expected to close in the beginning of 2024, subject to RPT shareholder approval and other customary closing conditions.
Shares in RPT triumphed $1.80, or 18.8%, to $11.37, while those for KIM nicked up 24 cents, or 1.3%, to $18.99.
