Landholder AMREP (NYSE:AXR) said Thursday that its majority owner, Nicholas G. Karabot, who holds a 60% stake, submitted a proposal for it to merge with another one of his controlled companies.

The deal would offer remaining AMREP stockholders a cash consideration of $12 a share.

The proposal, which is not a definitive offer, is contingent upon approval from both AMREP’s board of directions and shareholders.

AMREP cautioned shareholders that although the proposal has been received, no decisions have been made.

Shares of AMREP surged on the news, up more than 18% to $1.85.