Street Calls of the Week
Investing.com -- Lennar Corporation (NYSE:LEN) stock rose 4.3% in premarket trading Friday after the homebuilder announced an offer to exchange its approximately 20% stake in Millrose Properties (NYSE:MRP) for outstanding shares of Lennar Class A common stock.
The exchange offer, which begins immediately and will expire on November 7, 2025, allows Lennar stockholders to swap their Lennar Class A shares for Millrose Class A shares at a 6% discount. The exchange is subject to an upper limit of 4.1367 Millrose shares per Lennar share tendered and accepted.
Lennar currently owns 33,298,764 shares of Millrose Class A common stock, representing about 20% of Millrose’s outstanding shares. The company completed the spin-off of Millrose in February 2025, distributing approximately 80% of Millrose’s stock to Lennar stockholders at that time.
The final exchange ratio will be determined based on the average prices of both companies’ shares during the three trading days ending November 5, 2025, assuming the offer isn’t extended or terminated. If the exchange offer isn’t fully subscribed, Lennar plans to dispose of any remaining Millrose shares through subsequent transactions.
Goldman Sachs and J.P. Morgan Securities are serving as dealer managers for the exchange offer, which is voluntary for Lennar Class A stockholders. Holders of Lennar Class B common stock are not eligible to participate in the exchange.
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