Campus Crest Soars on Merger Agreement

By Chris Lange Updated Apr 27, 6:19PM EDT · Published Oct 19, 3:04PM EDT

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Campus Crest Communities, Inc. (NYSE: CCG) is leading the bulls on Monday afternoon on news of an acquisition. The REIT announced that it has entered into a definitive merger agreement with affiliates of Harrison Street Real Estate Capital.

The total estimated merger consideration is $7.03 per share, the overall transaction value is $1.9 billion. The merger agreement was unanimously approved by Campus Crest’s board of directors but it is still subject to customary closing conditions.

Under the terms of the merger agreement, the final merger consideration will be determined following the closing of the Montreal sale, currently expected to occur before October 30.

The total estimated consideration represents a 24% premium over the most recent closing price on Friday, and a 35% premium over the company’s 60-day volume weighted average price.

Richard Kahlbaugh, Non-Executive Chairman of Campus Crest, said:

Beginning in October of 2014, our Board initiated an undertaking to simplify the business model, change executive management and maximize shareholder value through a comprehensive strategic review process. We are pleased to announce that after thoroughly analyzing numerous proposals, including a number of qualified potential buyers and a range of alternative transactions, the Board unanimously determined that this transaction is the best course of action in achieving our goal to maximize shareholder value. We are pleased that Harrison Street recognizes the value inherent in our portfolio of high-quality student housing properties.

Christopher Merrill, co-founder, President and CEO of Harrison Street, added:

As a significant owner of student housing assets, we are pleased to add these attractive properties to our portfolio. The need for high-quality off-campus housing continues to grow and we believe this sector has strong long-term fundamentals that will drive sustainable returns.

Shares of Campus Crest were up nearly 17% at $6.64, with a consensus analyst price target of $6.75 and a 52-week trading range of $4.68 to $8.05.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.