Veris Residential (NYSE:VRE) has been offered to be taken over by its rival, Kushner Cos. Shares of Veris, a well-known real estate investment trust, surged 18.8% in the extended trading hours of Thursday after people familiar with the matter reported the developments to The Wall Street Journal.
Kushner has reportedly offered $16 per share for the company, taking the offered value to about $4.3 billion, which includes debt. The letter sent by the solicitor to Veris was reviewed by WSJ. Kushner, which owns a 5% stake in Veris, is also open to managing Veris’ properties rather than increasing its stake in the company. The letter also revealed that Kushner is confident about being able to improve its management and cut costs.
Veris had earlier refused to acknowledge an offer to have its properties managed by Kushner. Notably, Veris owns 7,700 rental units across New Jersey, one of the top U.S. states with the highest rent.
Is VRE a Good Investment?
Wall Street analysts are cautious about Veris stock. The consensus has a Hold rating on the stock, based on three Holds and one Sell. The average price target for VRE stock is $14.50, which indicates an upside of 16.75% to the current price level.
