Overview
- Two Harbors disclosed an unsolicited all-cash bid of roughly $10.70 per share, with the unnamed bidder indicating it would cover the $25.4 million termination fee.
- An ad hoc board committee said the proposal could reasonably be expected to become a company superior proposal, which would give UWM three business days to revise its terms if so designated.
- Under the signed agreement, Two Harbors investors would receive 2.3328 UWMC Class A shares per TWO share, a stock-for-stock deal initially valued at about $1.3 billion.
- A shareholder vote to approve the merger failed to reach a quorum and was adjourned to March 24, and UWM has hired Okapi Partners to help solicit proxies.
- Analysts at KBW and BTIG say UWM may need to sweeten the offer given the discount to tangible book value, with ISS reportedly recommending that Two Harbors shareholders vote against the deal.