For each share of Post Properties stock, shareholders would receive 0.71 share of newly issued MAA stock, the source said.
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Citigroup Global Markets Inc is the financial adviser to Mid-America Apartment, while JP Morgan is advising Post Properties.
Meanwhile, there have been more than $52 billion in deals among REITs, which can include apartment complexes, hotels and other types of businesses. Based on MAA’s closing stock price on August 12 of $102.15, and 53.5 million outstanding Post shares, that values the transaction at about $3.89 billion. With about 53.5 million shares outstanding, according to FactSet, the bid would value Post Properties at about $3.9 billion.
Real-estate investment trust MAA on Monday said it agreed to buy Post Properties Inc. for about $3.88 billion in an all-stock deal combining a pair of Sunbelt apartment owners who have benefited from a boom in rental demand.
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MAA, based in Memphis, Tennessee, has a market value of $7.7 billion and owns all or part of 254 multifamily properties and 79,496 units in 15 states, according to its website and Thomson Reuters data. Year to date, shares of Post Properties had climbed 5.2% and MAA have surged 12%, while the S&P 500 has gained 6.9%.
