We recently published 10 Market Beasts Leaving Wall Street in the Dust. Tri Pointe Homes Inc. (NYSE:TPH) was one of the best performers on Friday.
Tri Pointe climbed to a new all-time high on Friday, as investors gobbled up shares following news that it is set to be acquired by Japan-based Sumitomo Forestry for $4.5 billion.
At intra-day trading, the stock jumped to its highest price of $46.47 before paring gains to finish the session just up by 26.80 percent at $46.37 apiece.
Photo from Tri Pointe Homes website
In a statement, Tri Pointe Homes Inc. (NYSE:TPH) said that it officially inked a definitive agreement to be acquired by Sumitomo for $47 per share in an all-cash transaction. The purchase price reflects a 28.5 percent premium over its closing price of $36.57 on Thursday, February 12.
Under the transaction, a subsidiary of Sumitomo Forestry will merge with Tri Pointe Homes Inc. (NYSE:TPH), effectively making it a wholly owned subsidiary of Sumitomo Forestry America, Inc.
The transaction is expected for completion in the second quarter of the year, subject to customary closing conditions, including the approval of shareholders.
“This transaction delivers compelling cash value for our stockholders while accelerating our long-term growth strategy as an independent brand within a scaled, multi-faceted platform. Sumitomo Forestry’s expertise across the housing value chain will support our shared mission to serve the next generation of homebuyers,” Tri Pointe Homes Inc. (NYSE:TPH) CEO Doug Bauer said.
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Disclosure: None. This article is originally published at Insider Monkey.
