UWM Holdings Corp. Reaffirms $12.00/Share Acquisition Offer for Two Harbors, Addresses Financing Concerns
Summary
UWM Holdings Corp. publicly challenged Two Harbors' board for rejecting its $12.00 per share acquisition offer, reaffirming its bid and clarifying financing details.
Key Events
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Reaffirms Acquisition Offer
UWM Holdings Corp. reiterated its $12.00 per share acquisition proposal for Two Harbors Investment Corp., asserting its superiority over a competing $11.30 offer.
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Addresses Financing Concerns
UWMC confirmed a committed, unsecured $1.3 billion bridge facility from Mizuho Bank, Ltd., and noted the removal of customary due diligence conditions to facilitate the deal.
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Publicly Challenges Two Harbors Board
UWMC criticized Two Harbors' board for rejecting the higher offer and preventing stockholders from receiving greater value, stating it is exploring further options.
Analysis
UWM Holdings Corporation (UWMC) has publicly responded to Two Harbors Investment Corp.'s (TWO) rejection of its $12.00 per share acquisition proposal. UWMC asserts its offer is superior to Two Harbors' alternative $11.30 per share transaction with CrossCountry Mortgage, LLC. The company addressed Two Harbors' concerns regarding financing by confirming a committed, unsecured $1.3 billion bridge facility from Mizuho Bank, Ltd., with key conditions removed to facilitate closing. UWMC is assessing further options to ensure Two Harbors' stockholders can realize the higher value. This indicates an ongoing, contested M&A situation.
At the time of this filing, UWMC was trading at $3.56 on NYSE in the Finance sector, with a market capitalization of approximately $5.8B. The 52-week trading range was $3.38 to $7.14. This filing was assessed with neutral market sentiment and an importance score of 9 out of 10.