ARC Eyes MH Asset Sale to Farallon

Affordable Residential Communities Inc., Englewood, Colo., has announced that it will negotiate exclusively with Farallon Capital Management LLC through April 16 regarding Farallon's possible acquisition of ARC's manufactured home business.The transaction under discussion contemplates Farallon's purchase of substantially all ARC's operating assets (except its recently acquired insurance subsidiary, NLASCO) for an amount expected to total approximately $1.84 billion in cash, ARC said. "After giving effect to expenses, taxes, and repayment of debt associated with the assets under discussion, the amount realized by ARC is currently estimated to be between $520 million and $545 million net of retained debt and preferred stock, or between approximately $9.00 and $9.40 per common share on a fully diluted basis," ARC said.