Great Ajax stock rallies after Ellington Financial agrees to buy it at a premium in REIT merger

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Great Ajax Corp. stock is rallying 9% in premarket trades Monday after it agreed to be acquired by Ellington Financial Inc. for about $173 million in stock....

Great Ajax Corp. AJX stock is rallying 9% in premarket trades Monday after it agreed to be acquired by Ellington Financial Inc. EFC for about $173 million in stock. Ellington Financial said each share of Great Ajax common stock will be converted into 0.5308 shares of Ellington Financial common stock, or approximately 12.5 million shares of Ellington Financial common stock valued at about $172.5 million. The deal implies an offer price of $7.

Ellington Financial said each share of Great Ajax common stock will be converted into 0.5308 shares of Ellington Financial common stock, or approximately 12.5 million shares of Ellington Financial common stock valued at about $172.5 million. The deal implies an offer price of $7.33 per share for Great Ajax common stock, a premium of 19% above its closing price of $6.13 a share on Friday. Ellington Financial stockholders would own about 84% of the combined company.

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