A rival cash offer puts UWM Two Harbors deal in play

"A competing bidder has offered $10.70 per share in cash, valuing the company at roughly $1.12 billion based on about 105 million shares outstanding. The bidder has also indicated a willingness to cover the $25.4 million termination fee if Two Harbors walks away from its existing merger agreement with UWM."

"Under UWM's proposal, Two Harbors shareholders would receive a fixed exchange ratio of 2.3328 shares of UWMC Class A common stock for each share of TWO stock, implying a value of $11.94 based on UWMC's Dec. 16 closing price. In total, the deal is valued at about $1.3 billion."

"If it is deemed superior, UWM would have three business days to revise its offer. The ad hoc committee of the board has determined in good faith that the unsolicited proposal could reasonably be expected to lead to a Company Superior Proposal as defined in the UWMC merger agreement."

United Holding Corp.'s subsidiary United Wholesale Mortgage faces competition in acquiring Two Harbors Investment Corp. after receiving a competing $10.70 per share cash bid valued at approximately $1.12 billion. UWM's existing proposal offers 2.3328 UWMC shares per TWO share, valued at $11.94 and totaling $1.3 billion. The competing bidder also agreed to cover Two Harbors' $25.4 million termination fee. A shareholder vote initially scheduled for Monday failed to reach quorum and was rescheduled to March 24. Two Harbors' ad hoc committee is evaluating whether the new proposal qualifies as superior under merger agreement terms. If deemed superior, UWM has three business days to revise its offer. Two Harbors' board continues recommending the UWM transaction.

Read at www.housingwire.com