Weyerhaeuser Company (NYSE:WY): Commences Split-off Exchange Offer For WRECO
Dallas, Texas 05/23/2014 (FINANCIALSTRENDS) – Weyerhaeuser Company (NYSE:WY) yesterday announced to have commenced the split-off exchange offer related to its transaction of homebuilding business, WRECO (Weyerhaeuser Real Estate Company). The exchange offer is in connection with the previously announced transaction during November 2013 pursuant to which WRECO will become a wholly owned subsidiary of Tri Pointe Homes Inc. (NYSE:TPH). As per the terms agreed, a wholly owned subsidiary of TRI Pointe, Reverse Morris Trust will merge with and into WRECO. The said exchange is believed to be tax-free, for the U.S. federal income tax purposes, to participating shareholders of Weyerhaeuser Company.
Highlights of the Exchange Offer:
Under the terms of the exchange offer, Weyerhaeuser Company (NYSE:WY) shareholders have been granted an option to exchange none, some or all of their Weyerhaeuser common shares for WRECO common shares. Following the transaction, WRECO common shares will convert into the right to receive common shares of TRI Pointe’s stock. Weyerhaeuser will determine at which price Weyerhaeuser common shares and WRECO common shares will be exchanged. The price determination will be based on the daily average (volume-weighted) prices of Weyerhaeuser common shares and TRI Pointe common stock on the New York Stock Exchange during the last three trading sessions of the exchange offer.
Weyerhaeuser Company (NYSE:WY) anticipates to issue 100 million common shares of WRECO in the exchange offer which will later convert into 129.7 million common shares of Tri Pointe Homes Inc. (NYSE:TPH), and will depend on final exchange ratio. The exchange offer will expire on June 30, 2014 at 12:00 midnight, New York City time.
Weyerhaeuser Company owns or controls nearly seven million acres of timberlands in the U.S. and also managed 13.9 million acres in Canada under long-term licenses. The company is one of the largest private owners of timberlands across the globe. The company has reported total revenues of $8.5 billion during FY13 ended December 31, 2013. On Thursday, the stock closed at $30.35, gaining 0.33% from its previous close. The stock traded with unusual volumes of 22.03 million shares as compared to its 30 day average trading volume of 3.27 million shares.