Ellington Financial, Arlington Asset Investment Enter Definitive Merger Agreement
Portfolio Pulse from Benzinga Newsdesk
Ellington Financial will acquire Arlington Asset Investment in a definitive merger agreement. The deal implies a 73% premium to Arlington's share price on May 26, 2023, and a 15% discount to diluted tangible book value per share as of March 31, 2023.
May 30, 2023 | 11:14 am
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NEUTRAL IMPACT
Ellington Financial's acquisition of Arlington Asset Investment may have a neutral short-term impact on its stock price.
The acquisition of Arlington Asset Investment by Ellington Financial may not have a significant short-term impact on Ellington's stock price, as the market has likely already priced in the acquisition.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 100
POSITIVE IMPACT
Arlington Asset Investment's share price is expected to rise due to the 73% premium offered by Ellington Financial in the merger agreement.
The 73% premium offered by Ellington Financial for Arlington's shares indicates a significant increase in the value of Arlington's stock. This is likely to result in a short-term increase in Arlington's share price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100