Merger Arbitrage Mondays – STORE Capital To Be Acquired By GIC And Oak Street

Merger activity decreased last week with one new deal announced and seven deals completed. STORE Capital Corporation (STOR) Founded in 2011 and headquartered in Scottsdale, Arizona, STORE Capital is an internally managed net-lease REIT that acquires, invests, and manages Single Tenant Operational Real Estate. 80% of the company’s acquisitions are accounted for by companies in sale/leaseback transactions. STORE Capital primarily invests in properties that are subject to long-term NNN Leases. In a ‘triple net lease’, the three most common expenses charged back to the tenant or lessee include property taxes, insurance, and maintenance, often called the “three nets”. Approximately 94% of the company’s portfolio is represented by commercial real estate properties, subject to long-term leases, and 6% is represented by mortgage loans and financing receivables on commercial real estate properties. Berkshire Hathaway owned 9% of STORE Capital’s stock as of February 2021. The company reduced its ownership in the company from 9% to 5.26% during Q2 2022. On September 15, 2022, STORE Capital entered into a definitive agreement to be acquired by GIC, a global institutional investor in partnership with Oak Street, a Division of Blue Owl, one of the largest net lease investors, in an all-cash transaction valued at approximately $14 billion. Under the terms of the definitive merger agreement, STORE Capital stockholders will receive...

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