Austin, Texas — Institutional Shareholder Services (ISS), an independent proxy advisory firm, has recommended that stockholders vote in favor of the previously announced, all-cash acquisition of American Campus Communities (ACC) by Blackstone.
The proposed acquisition is expected for completion on August 9, subject to approval by the Austin, Texas-based company’s stockholders and the satisfaction or waiver of other customary closing conditions.
Blackstone plans to take the company private following the acquisition. This move comes as the price of public equity has been more expensive than private institutional capital over the past few years, according to Bill Bayless, co-founder and CEO of ACC, in a letter to employees earlier this year. During that time, many of the private players in the sector were able to acquire and develop more aggressively than the cost of public equities permitted.
The $12.8 billion purchase price represents a premium of 22 percent against ACC’s 90-day, volume-weighted average share price as of April 18, and a 30 percent premium over the company’s closing stock price on Feb. 16, the day prior to ACC disclosing an indication of willingness from Blackstone to acquire the firm.