Associated Estates Realty just announced a deal to sell itself to Brookfield Asset Management for $28.75 a share. The stock is up 16% today on the news.
A unit of Brookfield Asset Management Inc. agreed to buy U.S. apartment landlord Associated Estates Realty Corp. in a deal valued at $2.5 billion, including debt.
Brookfield offered to pay $28.75 a share in cash for the Richmond Heights, Ohio-based company, according to a statement Wednesday. The price is about 17 percent more than Associated Estates’ closing price on Tuesday.
This concludes a long and contentious battle over the proper valuation of AEC. I missed out on about the last 20% of upside (riding it from $15 to above $22), but still feel very happy for AEC shareholders nonetheless.
This company was treated so poorly by analysts for some sin that the CEO had committed in the 90’s. Was it an actual sin, or were the analysts being stupid? I don’t know.
What I do know is that AEC just unlocked major value for shareholders after laudable performance for the past five years. Nice work and congratulations to each of them.
That’s the match.If you enjoy the content at iBankCoin, please follow us on Twitter