The merger between Realty Income Corporation, of San Diego, and Dallas’ Spirit Realty Capital Inc. can proceed following Friday votes by Spirit stockholders to approve the deal.
The companies announced the development in a joint news release Friday. The merger, while subject to closing conditions, is expected to close Tuesday.
Realty Income (NYSE: O) shareholder approval is not required for the merger. The firm, with headquarters in Carmel Valley, announced the all-stock transaction, valued at approximately $9.3 billion, in October.
At the time, Sumit Roy, president and CEO of Realty Income, said the deal will enhance “the diversification and depth of our high-quality real estate portfolio.”
At Friday’s special meeting of Spirit stockholders, approximately 99.8% of the votes cast were cast in favor of the merger, which represented approximately 86.4% of the outstanding shares of the real estate investment trust’s common stock.
The final voting results from the special meeting will be set forth in Spirit’s Form 8-K filed with the Securities and Exchange Commission after certification by its inspector of election.
Under the terms of the agreement, at the closing of the merger, Spirit (NYSE: SRC) common shareholders will receive 0.762 newly-issued Realty Income common shares for each Spirit common share they owned.
In addition, all of Spirit’s outstanding shares of Series A Cumulative Redeemable Preferred Stock will be exchanged for shares of Realty Income Series A Cumulative Redeemable Preferred Stock
The new stock is expected to trade under the symbol “O PR” on the New York Stock Exchange.
