Acquirer Waives Merger Restriction, Allows Pro-Rated Dividend for Two Harbors Shareholders
TWO sits 44% above its 52-week low of $8.78.
Summary
Two Harbors' acquirer, CrossCountry Mortgage, has waived a merger agreement restriction, allowing Two Harbors to pay a pro-rated dividend to shareholders for the closing quarter.
Key Events · M&A and Partnerships · TWO
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Merger Agreement Restriction Waived
CrossCountry Intermediate Holdco, LLC (CCM) delivered a letter irrevocably waiving a restriction in the merger agreement, allowing Two Harbors to pay a pro-rated dividend.
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Pro-Rated Dividend Approved
Two Harbors is now permitted to declare and pay a pro-rated dividend on its common stock for the quarter in which the proposed merger closes, up to $0.34 per share.
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Shareholder Benefit
This dividend ensures Two Harbors stockholders of record immediately prior to the merger's effective time will receive a payment for the partial quarter, conditioned on the merger closing.
Analysis · TWO · Real Estate & Construction
CrossCountry Mortgage has agreed to waive a restriction in the merger agreement, enabling Two Harbors to pay a pro-rated dividend to its shareholders for the quarter in which the acquisition closes. This ensures shareholders receive a portion of the regular dividend that might otherwise be forfeited due to the timing of the merger, adding a positive financial benefit to the ongoing acquisition process.
At the time of this filing, TWO was trading at $12.60 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $8.78 to $14.17. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.