GMH Communities sets meeting date for merger vote

By Lisa Kerner

Charlotte, N.C., April 23 - GMH Communities Trust announced a special meeting of shareholders to be held on June 10 at 11 a.m. ET for the purpose of voting on the company's merger with American Campus Communities, Inc.

Upon the companies' merger agreement, GMH shareholders will receive $3.36 in cash and 0.07642 of a common share of American Campus stock, or total consideration of approximately $5.53 per share, GMH said in a notice to shareholders.

In February, GMH agreed to sell its military and student housing divisions in two separate transactions.

The first transaction was a securities purchase agreement with a U.S. subsidiary of Balfour Beatty plc in which Balfour will purchase all of the issued and outstanding capital stock and limited liability company interests of GMH's military housing division for $350 million in cash.

Proceeds from the sale will be used to pay off and terminate GMH's line of credit and for working capital.

In the second agreement, a subsidiary of American Campus would acquire GMH following completion of the Balfour transaction.

The merger of GMH and American Campus is contingent upon the completion of GMH's deal with Balfour.

It was previously reported that GMH, in connection with the merger, expected to sell its home office immediately prior to the transaction's close. The company would have the right to sell 10 additional student housing assets, with a percentage of the proceeds payable to shareholders and unitholders, according to a prior news release.

Balfour is an engineering, construction, services and investment group based in London.

Based in Austin, Texas, American Campus is a real estate investment trust specializing in the acquisition, development and management of student housing properties in the United States.

GMH is a publicly traded real estate investment trust and specialty housing company based in Newtown Square, Pa.

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