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VOL. 128 | NO. 107 | Monday, June 03, 2013

MAA Buying Colonial Properties Trust in Stock Deal

AP

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NEW YORK (AP) – Real estate investment trust Mid-America Apartment Communities Inc. is buying peer Colonial Properties Trust Inc. in an all-stock deal, expanding its presence in the South and Southwest portion of the U.S.

The combined company will include 285 properties and some of its biggest markets will include Atlanta, Houston and Orlando, Fla. The offer valued Colonial shares at about $2.15 billion at Friday's closing prices.

MAA shareholders will own 56 percent of the combined company upon completion of the deal while Colonial Properties shareholders will get 44 percent.

The combined company will keep the MAA name and its corporate headquarters will remain in Memphis, Tenn.

Each Colonial share will be converted into 0.36 of a share of MAA. At Friday's closing MAA price, that would be worth $24.46. That is an 11 percent premium over Colonial's closing price of $22.11 on Friday.

MAA will increase the size of its board to 12 members from seven members. Colonial will nominate four directors and its CEO, Thomas Lowder, will also become a member. Colonial Properties is based in Birmingham, Ala.

MAA CEO and Chairman H. Eric Bolton Jr. will keep those positions at the combined company. MAA Chief Financial Officer Albert M. Campbell III and Chief Operating Officer Thomas L. Grimes Jr. will also retain their titles.

The transaction, which is expected to close in the third quarter, was unanimously approved by both companies' boards. It still needs approval from a majority of both companies' shareholders.

The combined company will continue to trade under the "MAA" ticker symbol.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 41 41 17,762
MORTGAGES 70 70 23,138
FORECLOSURE NOTICES 14 14 4,532
BUILDING PERMITS 163 163 42,320
BANKRUPTCIES 50 50 16,741
BUSINESS LICENSES 14 14 5,795
UTILITY CONNECTIONS 113 113 25,287
MARRIAGE LICENSES 18 18 5,399

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