ARC Global Trust II and Global Net Lease Propose Merger Terms of 2.27 Shares of GNL Per Share of ARC Global Trust II
August 9, 2016 | by Beth Glavosek | Blue Vault
In a move intended to grow share value more accretively, improve diversification, and enhance portfolio metrics, American Realty Capital (ARC) Global Trust II has announced its intention to merge with Global Net Lease. According to a recent investor presentation, the deal would purportedly offer the benefits of increased scale and cost savings.
The merger agreement stipulates that each outstanding share of common stock, including restricted shares of common stock, of ARC Global Trust II will be converted into the right to receive 2.27 shares of common stock of GNL, plus a per-share dividend of $1.61 in cash upon completion of the transaction.
Blue Vault notes that if both GNL and ARC Global Trust II shareholders approve the deal, it will qualify as a full-cycle liquidity event for ARC Global Realty Trust II, shares of which originally sold for $25 per share.
As of close of business on August 5, GNL shares closed trading at $8.63. Based on the calculation provided in ARC Global Trust II’s filing, this would equate to a $21.20 value per share for stockholders at the close of the transaction. If approved, the transaction will close in the fourth quarter of 2016. The actual value of the merger to ARC Global REIT II shareholders would depend upon the price of GNL shares at that time.
The Blue Vault Summit could not have been more perfectly timed. This gathering of the Broker Dealer and Sponsor communities provided insightful and open discussion from several vantage points. These conversations are paramount, especially in a time of significant regulatory change.