The merger is expected to close April 10. The $9-billion price tag includes $1.6 billion in debt assumption and $30 per share in cash. According to a December release about the transaction, the price is an 18% premium over the previous week's closing stock price and a 26% premium over the company's average stock price since Realogy separated from Cendant Corp. on Aug. 1, 2006.
When the deal was first announced, Henry Silverman, Realogy chairman and CEO said, "After careful consideration, our board of directors has concluded that this transaction is in the best interests of Realogy and out stockholders. It will enable stockholders to realize the value of Realogy's fundamentally strong businesses. At the same time, the valuation takes into account the substantial pressures and uncertainties facing the residential real estate markets that may well continue for some time."
Parsippany, NJ-based Realogy is a real estate franchisor. The company includes such brands as Century 21, Coldwell Banker, Coldwell Banker Commercial, Sotheby's International Realty, NRT Inc., Cartus and Title Resource Group.
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