NEW YORK CITY— Two Harbors Investment Corp., a hybrid mortgage REIT, and CYS Investments, Inc. an agency mortgage REIT, announced on April 26, that they have entered into a definitive merger agreement dated April 25, under which Two Harbors will acquire CYS. The transaction is expected close in the third quarter of 2018.
Two Harbors is headquartered in New York City and CYS is based in Waltham, MA.
CYS stockholders will exchange their shares of CYS common stock for newly issued shares of Two Harbors common stock as well as $15 million cash payable to CYS stockholders on a pro rata basis. More specifically, CYS shareholders will receive $7.79 of combined cash and Two Harbors stock for each CYS share they own. This amounts to a 17.7% premium to the April 25 closing price of $6.62. MarketWatch reports the deal would value CYS at $1.5 billion.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
