By Lisa Kerner
Charlotte, N.C., Jan. 31 - BFC Financial Corp. and Levitt Corp. entered into a definitive merger agreement to make Levitt a wholly owned subsidiary of BFC Financial in a transaction worth an estimated $286 million.
The transaction is expected to close during the second quarter of 2007.
Holders of Levitt's class A common stock will receive 2.27 shares of BFC class A common stock for each of their Levitt class A stock share, according to a company news release.
Levitt is one of the Southeast's premier home builders and land developers.
BFC, a Fort Lauderdale, Fla.-based private investment firm, owns about 17% of Levitt, consisting of all of Levitt's class B common stock and about 11% of the company's class A common stock.
"This tax-free transaction is intended to provide Levitt shareholders a significant market premium, while preserving their opportunity to participate in any future home building recovery," Alan Levan, chief executive officer of both BFC Financial and Levitt, said in the release.
Levitt is a homebuilding and real estate development company based in Fort Lauderdale, Fla.
| Acquirer: | BFC Financial Corp.
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| Target: | Levitt Corp.
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| Payment per share: | 2.27 shares of BFC class A common stock for each share of Levitt class A stock share
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| Announcement date: | Jan. 31
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | NYSE: LEV; $10.88 on Jan. 30
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| Stock price for acquirer: | NYSE: BFF; $6.35 on Jan. 30
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