Wamu Successor WMIH To Buy Controlling Stake In Nationstar For $1.9 Billion
WMIH emerged from bankruptcy proceedings as the successor to Washington Mutual, Inc. The company had limited operations other than WMMRC’s legacy reinsurance business. However. it has now become a contender in mortgage lending. The company announced it plans to buy a controlling interest in Nationstar Mortgage. Shareholders for both companies have agreed to the deal.
80% of WMIH shareholders approved the proposal. More than 90% of Nationstar shareholders were in favor of the transaction.
All outstanding company Series B Preferred Stock and company common stock will be converted into common stock of WMIH. The shares issued pursuant to these conversions are also included in the pro forma ownership percentages referenced above.
Holders of the company’s Series B Stock at a fixed conversion price of $1.35 per share.
Nationstar CEO Jay Bray stated in a press release:
The former Wamu will merge with and into Nationstar. Nationstar will become a wholly-owned subsidiary of WMIH.
The stock exchange has an anticipated value of $702 million, and WMIH has secured $2.75 billion in financing commitments for the transaction.
Nationstar’s operations and name would remain unchanged as part of the new company. But the new company would trade under the ticker symbol WMIH.