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exPoint Diversified Real Estate Trust (NXDT) is acquiring NexPoint Hospitality Trust (NHT.U) in a merger deal that will dissolve the latter. Under the agreement, NHT's subsidiary companies will become corporations owned or managed by NXDT. Unitholders of NHT will receive either $0.36 in cash per unit or NXDT common shares equivalent to $0.36, based on the 10-day average share price prior to the transaction close.

    The deal is subject to regulatory and unitholder approval and is expected to be completed in Q1 2025. After completion, NHT units will be delisted from the TSX Venture Exchange. The proposed deal offers a premium of around 2,300% above NHT's 30-day average price of $0.015.

    Unitholders choosing shares will gain exposure to NXDT's larger asset portfolio and potential future value increase, while those opting for cash will receive immediate liquidity. The merger agreement includes customary assurances, guarantees, and non-solicitation rules. A five-business-day term allows NXDT to match competing bids, with a clause allowing NHT to consider outstanding proposals.

    The deal has been authorized by the board of trustees of NHT, excluding James Dondero due to a conflict of interest. The board recommends unitholders support the agreement at a special meeting. Approval from majority minority owners and NexPoint Diversified Real Estate Trust is also required.