Resource America Inc (NASDAQ:REXI) shares rose 48.76% to $9.61 in Tuesday’s trading session, following reports that the company will be acquired by a Texas firm for $207 million.
This deal translates to $9.78 per share in cash for Resource America Inc (NASDAQ:REXI) shareholders, a significant premium from the current market price. Shares are edging close to the 52-week high of $9.75 per share with a low of $3.54 per share.
The company has agreed to be acquired by C-III Capital Partners LLC of Texas, with the combined company managing over $25 billion of gross assets. In addition, it will be the owner or manager of more than 70,000 apartment units across the country. C-III Capital Partners LLC of Texas plans to retain the leadership and staff of Resource America Inc (NASDAQ:REXI), with the deal expected to close by the third quarter of the year.
However, this agreement is subject to investigation by former SEC attorney Willie Briscoe and securities litigation firm Powers Taylor LLP on potential claims that the board of directors might not be acting in the shareholders’ best interests as an analyst has set a price target of $11.00 per share. It is also looking into whether the board considered alternatives to the acquisition, and whether the board has employed an adequate process to review and act on the proposed transaction.
Resource America Inc (NASDAQ:REXI) is a real estate investment and finance firm based in Philadelphia. In particular, it evaluates, originates, services and manages investment opportunities through its real estate, financial fund management and commercial finance subsidiaries as well as its joint ventures. The company’s real estate segment is focused on acquiring and managing a portfolio of commercial real estate and real estate related debt, as well as value-added multifamily investments while its financial fund management segment focuses on the sponsorship and management of collateralized loan obligations (CLOs), and the management of legacy Collateralized Debt Obligations (CDOs).
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