Western Asset Mortgage Capital Corporation (WMC) announced late Thursday that its board had determined an unsolicited stock-and-cash proposal from AG Mortgage Investment Trust (MITT) to acquire WMC was superior to the merger agreement with Terra Property Trust (TPT). MITT’s July 13 offer values WMC at approximately $300 million.
In response, Pasadena-based WMC notified TPT that it intends to terminate their merger agreement unless a revised proposal is received by 11:59 p.m. Eastern Time on August 3rd. The board’s determination followed “a thorough and rigorous review of the MITT proposal and the TPT merger agreement,” according to a statement released by WMC.
The unsolicited bid from MITT came in about two weeks after New York City based TPT and WMC announced they would merge into one credit oriented REIT with roughly $1.2 billion in assets and $436 million of adjusted book value combined .
