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Front Yard Residential (RESI) Stock Surges On Takeover News

Sam Boughedda
Sam Boughedda trader
Updated 19 Oct 2020

Practice Stock Trading

Front Yard Residential (NYSE: RESI) has announced that Private Equity company Ares Management (NYSE: ARES) and investment management firm Pretium will acquire the company.

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The deal, which is valued at $2.4 billion, including debt, will see Front Yard shareholders receive $13.50 in cash per share. 

“We are excited to have reached an agreement with Pretium and Ares Management for the sale of our company, which we believe represents an outstanding, value-maximizing outcome for Front Yard stockholders,” commented George Ellison, Front Yard’s CEO.

The deal is expected to close in the first quarter of 2021.

Front Yard, a company that provides rental homes, has over 14,500 homes in its portfolio according to Reuters.

The news has seen its share price jump from $9.96 on Friday to $13.42 premarket on Monday, after a 34.74% rally. 

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Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.