Real estate throughout North America got a bit of a shakeup today. Investment company Blackstone (NYSE:BX) announced plans to acquire Tricon Residential (TSE:TCN). The move will ultimately see Tricon go private. That was enough to send Blackstone slightly higher and Tricon blasting up over 27% in Friday afternoon’s trading.
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Blackstone will shell out a combined total of around $3.5 billion to pick up all the outstanding shares of Tricon Residential, with the cash coming from a combined effort between Blackstone Real Estate Partners X and Blackstone Real Estate Income Trust, at last report. Shares will be acquired for $11.25, or about C$15.17 in cash. That was about a 30% premium against Tricon’s closing price yesterday. The deal is expected to wrap up in the second quarter of this year. Meanwhile, Tricon will stop its dividend reinvestment program, and no dividend will be paid.
Is Blackstone a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BX stock based on eight Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 44.53% rally in its share price over the past year, the average BX price target of $120.93 per share implies 1.92% upside potential.
