Shares of M.D.C. Holdings, Inc. (NYSE: MDC) are rising sharply on the US charts this morning. The MDC stock rose 18.21% to $62.76 according to the most recent check during the current session. An announcement of an acquisition deal earlier today is directly responsible for the recent increase in MDC shares.
A formal pact has been disclosed between M.D.C. Holdings (MDC) and Sekisui House, Ltd., a renowned Japanese housing manufacturer. In accordance with the terms of this accord, MDC is set to be acquired through an all-cash transaction orchestrated by a wholly-owned subsidiary of Sekisui House, pegging the equity valuation at US$4.9 billion.
The stipulations of the agreement specify that MDC stockholders will receive US$63.00 in cash for each share. This sum constitutes a noteworthy 41% premium over MDC’s 90-day volume-weighted average trading price and signifies an approximate 19% premium over the closing stock price on January 17, 2024—the conclusive trading day prior to the announcement of the deal.
Using the technological know-how and innovative building techniques that Sekisui House pioneered in Japan, MDC hopes to produce homes of the highest caliber and establish its leadership in important operational states. With this calculated action, Sekisui House hopes to further its global vision of “making home the happiest place in the world.”
Sekisui House will become a part of the Woodside Homes, Holt Homes, Chesmar Homes, and Hubble Homes family of companies after closing, making it the fifth-largest housebuilder in the United States (based on the number of houses finished in 2022). Sekisui House aims to construct 10,000 residences beyond Japan by FY2025, accelerating the achievement of their goal.
Having a history surpassing 50 years, MDC consistently upholds a commitment to excellence, a key factor in its enduring triumph. This dedication generates prosperity for shareholders and also serves the interests of clients, employees, and business allies. With a track record of erecting over 240,000 dwellings, MDC has risen to prominence as a premier homebuilder in the nation.
Its strategic proficiency is evident in its adept navigation of various housing market fluctuations, showcasing corporate resilience. MDC’s constant commitment on enhancing shareholder value and producing significant cash flows for its shareholders is demonstrated by the company’s decision to combine with Sekisui House.
