American Campus Communities, Inc. (ACC), a real estate investment trust, announced on Wednesday that it has completed the acquisition of GMH Communities Trust (GCT) in a transaction focused at increasing ACC's total market capitalization to $2.5 billion from $1.3 billion.
As per the deal, each common share of GMH and each unit of GMH's operating partnership were converted into a right to receive 0.07642 of a share of ACC common stock and $3.36 per share in cash. The deal consideration is in addition to the previously announced special distribution of $1.71 payable on June 12, 2008 to each GMH shareholder of record as of June 10, 2008.
American Campus said that this transaction is solely related to GMH's student housing business and not its military housing business, which was sold in a previously announced separate transaction to a U.S. subsidiary of Balfour Beatty plc.
In connection with the acquisition, Joseph Macchione, who previously served as GMH's Executive Vice President and General Counsel, joined the American Campus board effective immediately.
Simultaneously, American Campus also formed a joint venture with Fidelity Real Estate Group, on behalf of an institutional fund and transferred 15 GMH student housing properties to the venture with an estimated value of $326 million.
Shares of American Campus closed Wednesday's regular trade at $30.59, down 10 cents or 0.33%. In the extended hours trading, the stock further lost 3 cents or 0.09%.
GMH Communities Trust's stock closed Wednesday's regular trading session at $7.36, up 2 cents or 0.27%.
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