TORONTO - Tricon Residential Inc. (NYSE: NYSE:TCN, TSX: TCN), a significant player in the North American real estate market, announced that its shareholders have overwhelmingly voted in favor of the acquisition by Blackstone (NYSE:BX) Real Estate entities. In a special meeting, shareholders approved a statutory plan of arrangement under which Blackstone will acquire all outstanding common shares of Tricon for US$11.25 per share in cash.
The approval required a two-thirds majority of votes cast by shareholders present or represented by proxy, as well as a simple majority excluding certain shareholders as per regulatory requirements. The votes in favor of the arrangement were approximately 99.3% of the votes cast, and excluding the required shares, approximately 99.2%.
The transaction is subject to customary closing conditions, including court and regulatory approvals. Tricon is set to seek a final order from the Ontario Superior Court of Justice on April 5, 2024, to approve the arrangement. If all conditions are met, the transaction is expected to be finalized in the second quarter of 2024.
Upon completion, Tricon's common shares will be delisted from both the New York Stock Exchange and the Toronto Stock Exchange. The company will also cease to be a reporting issuer under Canadian securities laws and deregister under the U.S. Securities Exchange Act.
Tricon Residential, with a growing portfolio of approximately 38,000 single-family rental homes in the U.S. Sun Belt and multi-family apartments in Toronto, Canada, emphasizes its commitment to providing high-quality rental housing and contributing to solving the housing supply shortage.
Shareholders of Tricon Residential seeking to submit their shares and receive the transaction consideration were provided with a letter of transmittal alongside the management information circular dated February 15, 2024. For assistance, they are directed to contact the company's transfer agent and depositary.
This news is based on a press release statement, and it is important to note that forward-looking information, such as expectations regarding the completion of the transaction and its timing, involves risks and uncertainties. The forward-looking statements are based on management's current expectations and assumptions, but actual results could vary significantly.
InvestingPro Insights
As Tricon Residential Inc. (NYSE: TCN) prepares for its acquisition by Blackstone, the company's financial health and market performance provide a broader context for the transaction. According to the latest data on InvestingPro, Tricon boasts a market capitalization of $3.3 billion, reflecting a significant presence in the real estate sector. Despite a challenging environment, Tricon's gross profit margin stands strong at 70.39% for the last twelve months as of Q4 2023, showcasing the company's ability to maintain profitability.
Investors monitoring the company's performance will note that Tricon's shares are trading near their 52-week high, with a price that is 99.82% of this peak. This is indicative of a robust market confidence and aligns with the company's recent price uptick, which saw a 55.03% one-year total return. The InvestingPro Tips highlight that Tricon has not only been profitable over the last twelve months but also anticipates net income growth this year, which may reassure investors of the company's solid standing amidst the acquisition process.
For those considering a deeper dive into Tricon's financials and future prospects, there are additional InvestingPro Tips available, offering insights such as the company's ability to maintain dividend payments for 14 consecutive years and its expected sales decline in the current year. To access these valuable tips and more, visit InvestingPro and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 10 more InvestingPro Tips listed on the site that can help investors make informed decisions.
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