Shares of RPT Realty (NYSE: RPT) were up 18.8% as of 11:50 a.m. ET Monday, according to data provided by S&P Global Market Intelligence, after the company agreed to be acquired by Kimco Realty Corporation (NYSE: KIM). Shares of Kimco were also up modestly on the news.

In a press release early this morning, RPT Realty announced it has agreed to be acquired by Kimco Realty in an all-stock transaction valued at roughly $2 billion, including the assumption of debt and preferred stock. Per the terms of the agreement, RPT investors will receive 0.6049 of a newly issued Kimco share for each RPT share they own, equating to roughly $11.34 per RPT share based on Kimco's closing price on August 25, 2023 -- a roughly 19% premium to RPT's closing price on Friday.

The combination of the two leading real estate investment trusts (REITs) will create a consolidated entity with a pro forma equity-market capitalization of around $13 billion, and a total enterprise value of roughly $22 billion. Assuming the transaction closes as planned around the beginning of 2024 -- and noting it's still subject to RPT shareholder approval and other normal closing conditions -- Kimco shareholders and RPT investors will own around 92% and 8% of the combined company, respectively. 

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Source Fool.com