UDF IV Shareholders Approve Merger with Ready Capital Corporation
IRVING, Texas, March 04, 2025 – United Development Funding IV (“UDF IV” or the “Trust”), a real estate investment trust, announced today that the merger proposal with Ready Capital Corporation (“Ready Capital”) was approved by UDF IV shareholders during the Special Meeting of Shareholders held on March 4, 2025. The merger was certified by UDF IV’s inspector of elections, First Coast Results, Inc.
Background
UDF IV is a real estate investment trust that invests in income-producing properties and real estate-related assets. The Trust’s primary investment objective is to generate stable and consistent income from its real estate assets. Ready Capital, on the other hand, is a publicly-traded real estate investment trust and finance company that originates, acquires, and manages commercial real estate loans and other commercial real estate debt investments.
Merger Details
Under the terms of the merger agreement, each outstanding share of UDF IV common stock will be converted into the right to receive $1.70 in cash and 0.0521 of a share of Ready Capital common stock. The total consideration for the merger is approximately $1.1 billion, based on the number of UDF IV shares outstanding as of February 19, 2025.
Impact on UDF IV Shareholders
UDF IV shareholders who approve the merger will receive cash and Ready Capital common stock in exchange for their UDF IV shares. The cash portion of the consideration will be paid out in the form of a special cash dividend. The tax treatment of the merger consideration is expected to be taxed as a taxable transaction for U.S. federal income tax purposes. UDF IV shareholders are encouraged to consult their tax advisors regarding their specific tax situations.
Impact on the World
The merger between UDF IV and Ready Capital is expected to broaden Ready Capital’s presence in the real estate market. With the addition of UDF IV’s real estate portfolio, Ready Capital will manage approximately $12.5 billion in assets, making it a significant player in the real estate industry. The merger may also lead to potential synergies and cost savings for Ready Capital, which could benefit its shareholders.
Conclusion
The merger between UDF IV and Ready Capital marks an important milestone for both companies. UDF IV shareholders have approved the transaction, which is expected to provide them with cash and Ready Capital common stock. The merger will also expand Ready Capital’s reach in the real estate market and potentially lead to synergies and cost savings. As the transaction moves forward, both companies are poised to benefit from this strategic alliance.
- UDF IV shareholders approved the merger with Ready Capital Corporation.
- UDF IV shareholders will receive cash and Ready Capital common stock in exchange for their UDF IV shares.
- The merger is expected to broaden Ready Capital’s presence in the real estate market.
- Potential synergies and cost savings may benefit Ready Capital shareholders.
