D.R. Horton Enters Confidentiality Agreement With Forestar Regarding Offer

(RTTNews) - Homebuilder D.R. Horton, Inc. (DHI) announced Friday that it has entered into a confidentiality agreement with Forestar Group Inc. (FOR).

Under the deal, both companies have agreed to exchange information and participate in discussions related to the previously announced proposal to acquire 75% of the outstanding shares of Forestar for $16.25 per share in cash.

It was on June 5 that D.R. Horton said it has submitted a proposal to acquire 75% of the currently outstanding shares of Forestar. Under the proposed transaction, Forestar would remain a public company and its common stock will trade on the NYSE.

Following the merger, D.R. Horton would own 75% of the outstanding Forestar Successor shares, and existing stockholders would own 25% of the outstanding Forestar Successor shares.