By Vlad Schepkov 

Diversified Healthcare Belief (NASDAQ:) introduced at the moment it has entered a merger settlement with Workplace Properties Revenue Belief (NASDAQ:), in accordance with a joint assertion launched by the 2 actual property funding trusts (REITs).

Underneath the phrases of the all-stock deal, DHC shareholders will obtain 0.147 shares of OPI for every frequent share of DHC based mostly on a hard and fast change ratio, for an implied worth of $1.70 per DHC share, representing a 20% premium to the typical closing value of DHC within the final 30 buying and selling classes. Upon completion of the merger, DHC shareholders will personal roughly 42% of the mixed firm, whereas OPI shareholders will personal the remaining 58%

The merger, nonetheless topic to the approval of DHC and OPI shareholders and different customary closing situations, is predicted to be instantly accretive to DHC shareholders on a professional rata foundation and is predicted to outcome typically and administrative financial savings of roughly $2M-$3M yearly.

OPI would be the surviving entity within the merger and intends to vary its identify to “Diversified Properties Belief” upon closing of the transaction, at the moment projected for Q3 2023.

“The merger with OPI vastly advantages DHC each strategically and financially” – commented Jennifer Francis, DHC’s President and CEO.

Shares of OPI are buying and selling over 20% decrease following the announcement, whereas DHC is up almost 4%.