New York REIT To Sell And Liquidate Assets, Giving Proceeds To Shareholders
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New York REIT announced plans to liquidate and delist from the NYSE today, turning over proceeds from the sale of assets to shareholders.
The announcement follows a failed $8.4B merger with The JBG Cos earlier this month that was greatly contested by shareholders. NYRT’s board decided it was in the best interest of its shareholders to sell off its assets rather than merge with the DC-based developer—saying the dissolution of the company would be the best way to monetize and realize the value of its assets. The merger was terminated Aug. 2.
After paying off its debts, the REIT estimates returning between $8.73 and $11.50 per share to stockholders. The REIT said it is also open to selling the company as a whole to a buyer, Bloomberg reports.
"We believe that moving forward with a Plan of Liquidation and selling our assets in an orderly manner will maximize value for our stockholders,” NYRT CEO Michael Happel said in the statement released today.
The company’s shares fell 0.9% to $9.95 following the announcement this morning. [Bloomberg]