12:06 PM EDT, 09/13/2024 (MT Newswires) -- Melcor Developments ( MODVF ) late on Thursday agreed to acquire the 45% it doesn't already own of Melcor REIT (MR-UN) for $4.95 per unit.

The price is a 46% premium to the REIT's closing price on Sept. 12 and a 61% premium to the 30-day volume weighted average unit price.

At deal closing, Melcor Developments ( MODVF ) will redeem and pay out in cash all $46 million plus interest of the REIT's 5.10% convertible unsecured subordinated debentures having a maturity date of Dec. 31.

The REIT's board of trustees has unanimously recommended that unit holders vote in favor of the transaction.

The trust units and debentures will cease to be listed on the TSX.

The REIT's units were last seen up US$1.42 to $4.81 on the Toronto Stock Exchange, while Melcor shares were up $0.22 to $12.60.

Price: 12.60, Change: +0.33, Percent Change: +2.69