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Deals

Front Yard Residential Corp to be taken private for about $767 million

(Reuters) - Private equity firm Ares Management Corp ARES.N and investment management firm Pretium on Monday agreed to buy U.S. rental homes owner Front Yard Residential Corp RESI.N for about $767 million.

Front Yard stockholders will get $13.50 per share in cash, a premium of about 35.5% to its closing price on Friday, the company said.

The deal, expected to close in the first quarter of 2021, is valued at about $2.4 billion including debt, Front Yard said.

Front Yard had a rental portfolio of 14,512 homes, as of June 30. The equity value of the deal is based on 56.8 million diluted shares outstanding as of June 30.

Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta

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