Realty Income to Acquire Spirit Realty Capital in $9.3 Billion All-Stock Deal Amid Fairness Concerns

Deal set to vastly increase Realty Income's portfolio, sparking investigation into the fairness of the sale as Spirit shareholders voice discontent over $37.34 per share price, lower than the average Wall Street target.

• Realty Income Corp, a commercial real estate investment trust (REIT), has announced plans to acquire another REIT, Spirit Realty Capital, in an all-stock deal valued at $9.3 billion.
• Spirit shareholders will receive 0.762 newly issued Realty Income share for each Spirit Realty share held. This values each Spirit share at $37.34, a 15.4% premium to the its closing price.
• The acquisition is set to increase Realty Income's portfolio significantly, creating an enterprise value of approximately $63 billion for the combined company and paving the way for future growth.
• The law firm of Wohl & Fruchter LLP is investigating the fairness of the proposed sale of Spirit Realty Capital, as the agreed price of $37.34 per share is below the average Wall Street analyst's price target of $41.13 per share.
• The deal, expected to close in the first quarter of 2024, would result in Realty Income shareholders owning roughly 87% of the combined company, with Spirit Realty shareholders holding the remaining 13%.

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