(Reuters) - Lennar Corp <LEN.N>, the No. 2 U.S. homebuilder, stated it will purchase WCI Communities Inc <WCIC.N>, which makes luxury buildings, in a $643 million-deal so that it will combine two of the greatest homebuilders in Florida.
Lennar's offer of $23.50 per share – half in money and half in stock – represents a top rate of about 37 p.c to WCI's Wednesday shut. WCI shares rose to $23.50 premarket on Thursday.
Lennar, which mainly caters to buyers trying to find a second domestic, whereas WCI calls itself a lifestyle neighborhood developer and builds single-household and multi-family unit luxurious buildings, including luxurious excessive-upward push towers.
"WCI's land portfolio dovetails completely with our personal Florida footprint and expands our product providing to catch more of the circulate-up market," Lennar Chief executive Stuart Miller mentioned in an announcement.
The transaction, which might be in the form of a merger between WCI and a newly shaped Lennar unit, gives WCI an commercial enterprise price of $809 million, Lennar spoke of.
WCI stated the merger settlement gave it 35 days to shop for a far better offer.
Lennar pointed out it had the alternative of expanding the cash portion of the offer, including paying the full volume in money.
WCI's fiscal advisers are credit score Suisse and Citigroup world Markets Inc and its legal advisers are Latham & Watkins LLP.
Lennar's legal adviser is Goodwin Procter LLP and Gibson Dunn & Crutcher LLP is its special tax information.
(Reporting via Arunima Banerjee in Bengaluru; enhancing by means of Savio D'Souza)
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