New York REIT, JBG Companies terminate combination agreement
Manhattan office and retail landlord New York REIT, which announced the combination in May, said it will pay JBG Companies $9.5 million as reimbursement for certain costs.
"It is in the best interests of the company and its stockholders to terminate the combination agreement effective immediately," New York REIT chairman Randolph Read said.
After the termination, the real estate investment trust would adopt a plan of selling individual assets and the proceeds would be distributed to the its stockholders.
New York REIT shareholders Michael Ashner and Steven Witkoff said in June they believed the REIT's proposed combination with JBG would cause "material and permanent" damage of stockholder value and that the board needs to be overhauled to "unlock stockholder value and protect stockholder interests." ■