NorthStar Asset Management, Colony Capital, NorthStar Realty To Merge

NorthStar Asset Management Group Inc. , Colony Capital Inc. and NorthStar Realty Finance Corp. said Friday they have agreed to combine in an all-stock merger of equals transaction. The deal will create an equity real estate investment trust with $58 billion of assets under management, the companies said in a statement. The new entity will be called Colony NorthStar Inc. and the deal is expected to close in the first quarter of 2017. Upon completion, NSAM shareholders will own about 32.85% of the new entity, Colony shareholders will own about 33.24% and NRF shareholders will own about 33.9%. NSAM shareholders will also receive a special cash dividend equal to $128 million. NSAM and NRF shares surged more than 7% on the news in premarket trade, while Colony shares were not yet active.