Weyerhaeuser Company (NYSE:WY) Sets Exchange Ratio of Stock

Weyerhaeuser Company (NYSE:WY) set the exchange ratio of stock as part of its $2.7 billion deal to sell its homebuilding unit to developer Tri Pointe Homes Inc. (TPH).

The ratio will be 1.7003 common shares of Weyerhaeuser Real Estate Co. for each Weyerhaeuser common share tendered, according to a statement on Monday. The exchange offer is in connection with a tax-free Reverse Morris Trust transaction announced in November that mergers a subsidiary of Tri Pointe with Weyerhaeuser Real Estate.

Each Weyerhaeuser Real Estate common share will automatically convert into the right to receive 1.297 shares of Tri Pointe common stock. Weyerhaeuser shareholders will receive approximately 2.2053 shares of Tri Pointe common stock for each Weyerhaeuser common share accepted for exchange.

The exchange is expected to be tax-free to participating Weyerhaeuser shareholders for U.S. federal income tax purposes, the statement said. Weyerhaeuser closed at $33.09 a share. It has traded from $26.64 to $33.26 in the past 52 weeks.

Tri Pointe closed at $15.72 a share. Its 52-week range is $13.43 to $20.29.