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Apartment Income REIT (NYSE:AIRC) has soared in value after Blackstone (NYSE:BX) announced its decision to take the real estate investment trust (REIT) private.
Climbing at a rapid pace, Blackstone will acquire all outstanding shares of AIRC stock for $39.12 per share, marking a 25% premium over the stock’s closing price and its 30-day weighted average.
Valued at $10 billion, the deal has received unanimous approval from the Apartment Income REIT Board of Directors, leading to the temporary halt of the company’s quarterly dividend.
Reacting to the acquisition news, Terry Considine, AIR Communities’ president and CEO, expressed enthusiasm for the collaboration, stating: “The business the AIR team has built will be improved and expanded by collaboration with Blackstone and a shared focus on serving residents and investing wisely. The AIR team is grateful to Blackstone for the opportunity and for its faith in what can be accomplished working together.”
Implications for AIRC Stock
Following its acquisition by Blackstone, AIRC stock will no longer be traded on public markets after the transition, expected in the third quarter of 2024.
Today, AIRC stock is witnessing substantial trading activity on the news of the acquisition, with over 12 million shares changing hands, far beyond its usual daily trading volume of around 1.2 million shares.
As of Monday morning, AIRC stock is up by 22.5% in response to the announcement.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
