NEW YORK (AP) — Real estate investment trust Mid-America Apartment Communities Inc. is buying Colonial Properties Trust Inc. in an all-stock deal, expanding its presence in the South and Southwest portion of the U.S.

The combined company will include 285 properties and some of its biggest markets will include Atlanta, Houston and Orlando, Fla.

Each Colonial share will be converted into a 0.36 of a share of MAA. At Friday's closing MAA price, that would be worth $24.46. That is an 11 percent premium over Colonial's closing price of $22.11 on Friday.

The offer values Colonial shares at about $2.15 billion.

The transaction was unanimously approved by both companies' boards. It needs approval from a majority of both companies' shareholders.

The combined company will have corporate headquarters in Memphis, Tenn. — where MAA is based.

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