TPG Mortgage to Acquire Cherry Hill in $3.10/Share Deal, 29% Premium
MITT is trading near its 52-week low of $6.91 (2.5% above the low) on elevated volume (2.3× avg).
Summary
TPG Mortgage Investment Trust (MITT) will acquire Cherry Hill Mortgage Investment Corp (CHMI) in a cash-and-stock deal valuing CHMI at $3.10 per share, a 29% premium to its unaffected close. CHMI stockholders will receive 0.3063 shares of MITT common stock and $0.93 in cash per share, with an implied transaction value of $117.5 million. The combined portfolio reaches $9 billion, with MITT shareholders owning 73% of the pro forma company. Management expects $7-9 million in annual cost synergies and accretion to earnings within a year. The deal, unanimously approved by both boards, is expected to close in Q4 2026. This follows MITT's 2023 acquisition of Western Asset Mortgage Capital, signaling continued consolidation in the residential mREIT space.
At the time of this announcement, MITT was trading at $7.08 on NYSE in the Finance sector, with a market capitalization of approximately $225.5M. The 52-week trading range was $6.91 to $9.27. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: BusinessWire.