Mid-America Apartment Communities Inc. confirmed Monday that it will buy Post Properties Inc. in an all-stock deal that values the apartment owner at just under $4 billion. Under terms of the deal, each Post Properties stock will be exchanged for 0.71 shares of new MAA stock. Based on Friday's closing prices, that values Post Properties shares at about $72.53 each, or a 17% premium. With about 53.5 million shares outstanding, according to FactSet, the bid would value Post Properties at about $3.9 billion. The real estate investment trusts expect the deal, with synergies estimated to be about $20 million, to close during the fourth quarter. MAA own about 68% of the combined company's equity. The Wall Street Journal had reported over the weekend that the companies were near a deal. Post Properties' stock was still inactive in premarket trade, while MAA shares were indicated about 1.3% higher. Year to date, shares of Post Properties had climbed 5.2% and MAA have surged 12%, while the S&P 500 has gained 6.9%.
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