UPDATE 1-Western Asset Mortgage intends to terminate Terra Property merger
(Adds details from statement in paragraph 3 and background)
July 27 (Reuters) - Western Asset Mortgage Capital Corporation on Thursday said it notified Terra Property Trust that it intends to terminate their merger agreement unless the company receives a revised proposal by Aug. 3.
In June, Terra Property Trust and Western Asset Mortgage entered into a merger to form a real estate investment trust (REIT) that is expected to have $1.2 billion in assets and $436 million of adjusted book value upon completion.
The notification came after AG Mortgage Investment Trust earlier this month made a stock-and-cash offer to Western Asset Mortgage, managed by Franklin Resources Inc , valuing it at about $300 million including debt.
On Tuesday, Terra Property Trust acquired a 5.2% Stake in AG Mortgage Investment Trust, making it the second largest stockholder.
Terra Property Trust did not immediately respond to a Reuters request for comment.
Western Asset Mortgage invests in residential whole loans and mortgage-backed securities, as does AG Mortgage Investment Trust.
Angelo Gordon, a credit and real estate-focused investment firm which manages AG Mortgage, agreed in May to sell itself to private equity firm TPG Inc for $2.7 billion. It currently manages about $73 billion in assets. (Reporting by Urvi Dugar in Bengaluru; Editing by Nivedita Bhattacharjee and Subhranshu Sahu)
