Update 11/14/25: The Lennar and Millrose exchange offer has been extended due to recent delays. The new expiration is set for midnight ET on November 21, 2025. Each brokerage may have different cutoff times, so it's crucial to check with yours. For instance, my Fidelity account specifies a cutoff at 7:00 PM ET on November 20, 2025. I strongly recommend confirming with your broker before market close on that day to ensure your participation.
Lennar remains committed to completing this exchange, which provides a window to research and decide on purchasing 99 shares to tender. The site Envisionreports.com/lennarexchange offers updated statistics on this offer.
Participating in stock exchange offers can be rewarding, especially with provisions for smaller investors like the "odd lot tenders." These opportunities can be better understood through past examples like Cummins/Atmus Filtration and J&J/Kenvue.
Lennar, a major homebuilder, announced an exchange offer as part of its spin-off of Millrose Properties, a land bank REIT. Rich Howe from StockSpinoffInvesting.com provides an insightful analysis of this deal.
Investment Opportunity
On October 10, 2025, Lennar announced an exchange offer allowing investors to swap their Lennar shares for Millrose Properties shares. For every $100 in Lennar shares, investors receive $106.43 in Millrose shares. This offer is likely to be oversubscribed, but the odd lot provision ensures that those holding 99 shares or less aren't prorated. This could lead to a profit of around 6.4% or approximately $757.
Steps to Participate
- Buy 99 shares of Lennar at the current price.
- Contact your broker to participate in the exchange offer.
- Once the exchange is complete, sell the Millrose shares for profit.
It's important to act before the deadline of November 7, 2025, with brokers like Schwab having earlier internal deadlines. I recommend purchasing by November 3, 2025, to ensure settlement.
For more details, visit the official transaction website and check the exchange offer spreadsheet.
Risks and Considerations
While this trade offers potential gains, risks include a potential sell-off of Lennar shares or a weak performance of Millrose shares post-exchange. Additionally, though unlikely, the exchange could be canceled or the odd lot provision removed.
For those considering this opportunity, it's crucial to conduct thorough due diligence and consult with an investment advisor.
Disclosure: Rich Howe, owner of Stock Spin-off Investing, plans to purchase Lennar shares. Opinions shared here are subject to change and should not replace professional financial advice.
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