Front Yard Residential’s stock soars after buyout deal with Pretium, Ares Management valued at $2.4 billion

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Shares of Front Yard Residential Corp. soared 33% toward a more than 3-year high in premarket trading Monday, after the U.S. Virgin Islands-based rental homes company announced an agreement to be acquired in deal valued at $2.4 billion by a partnership led by Pretium and funds managed by Ares Management Corp. Under terms of the deal, Front Yard shareholders will receive $13.50 a share in cash for each Front Yard share they own, representing a 35.5% premium to Friday’s closing price of $9.96. The last time Front Yard’s stock closed at or above $13.50 was June 2017. The deal is expected to close in the first quarter of 2021. Front Yard shares have dropped 19.3% year to date through Friday, while the S&P 500 has gained 7.8%.
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