(Reuters) Campus Crest Communities Inc, a student housing real estate investment trust, said it agreed to be bought by privately held Harrison Street Real Estate Capital LLC for $1.9 billion, including debt.
The deal, valued at $7.03 per share, includes $6.90 in cash and net proceeds from the company’s sale of its evo Montreal joint venture estimated to be 13 cents per share, the company said on Friday.
The news comes more than five months after the company, which had been trying to sell itself, hired consulting firm Alvarez & Marsal to help in repositioning and appointed two of the consulting firm’s executives as interim chief executive and chief financial officer.
Campus Crest said the final deal value would be determined only after Montreal sale, which is expected to occur before Oct. 30.
If the Montreal sale does not occur prior to the closing of the merger with Harrison, Campus Crest said shareholders will receive about $6.23 per share in cash and one non-transferable contingent value right per share.
The deal, which has been approved by both the boards, is expected to close during the first quarter of 2016.
Moelis & Company LLC are financially advising Campus Crest and Kilpatrick Townsend & Stockton LLP is its legal adviser.
Raymond James and Associates is the financial adviser to Harrison Street and DLA Piper LLP is its legal adviser.
Campus Crest’s shares closed at $5.68 on the New York Stock Exchange on Friday.