The Wall Street Journal-20080213-GMH Communities Trust- Company Plans to Sell Itself In Deals Valued at --36-787 Million

Return to: The_Wall_Street_Journal-20080213

GMH Communities Trust: Company Plans to Sell Itself In Deals Valued at $787 Million

Full Text (112  words)

GMH Communities Trust announced plans to sell itself in two deals valued at $787 million, with its military-housing business going to one company and student-housing division being merged with another. A subsidiary of Balfour Beatty PLC will buy GMH's military-housing division for $350 million, or $4.08 a share, and American Campus Communities Inc. will acquire the remaining student-housing business for $437 million, or $5.53 a share in cash and stock. The sale is worth a total of nearly $9.61 a share, which represents a 72% premium on GMH's Monday closing stock price of $5.59. GMH shares closed up 55.1% at $8.67 in 4 p.m. trading on the New York Stock Exchange yesterday.