Boston, MA 10/03/2013 (wallstreetpr) – The $16.07 billion market capitalized Weyerhaeuser Co. (NYSE:WY) is looking for bidders who want to buy its wholly owned subsidiary “Weyerhaeuser Real Estate Co”. The company hopes to hive off this homebuilding division by using the “reverse morris trust” arrangement thus avoiding any taxation liability. One of the potential buyers showing keen interest is Brookfield Residential Properties (BRP). This is a wholly owned subsidiary of Brookfield Asset Management.
The firm is also trying to raise capital by other means at its disposal. On September 12 the firm also filled regulatory filings to SEC including a prospectus for its proposed $500 million issuance of senior notes which will be due in 2023 and attract 4.625% interest on aggregate principal.
The stock of this S&P 500 tracked company have been under pressure to perform on the browsers in the recent past. It has managed to post a 1.8% forward movement in value over its previous week close. Through the quarter, it has shown a 2.1% increase in market value. On a trailing 12 month period, it has recorded net income of $600 million from annual sales of $7.86 billion. It has paid out close to $0.88 dividend over the past 12 months amounting to a 3.03% dividend yield in order to keep its investors happy.
As of October 2its share is priced $29.07 which is 12% below its 52 week high valuation and close to 18% above its 52 week low pricing. Investor interest in the stock was relatively muted through the day with only 3.01 million shares changing hands in contrast to average daily trading volume of 4.32 million. It has close to 552 million shares outstanding with a target price of $32 over the next 6 months. It had recorded a increase of 19% in sales in its 2Q and will be hoping to report strong numbers on October 23 when its 3Q announcements are due.
