Two Harbors Investment Corp. (TWO) has announced the adjournment of its special shareholder meeting concerning the proposed acquisition by UWM Holdings Corp., the parent company of United Wholesale Mortgage (UWM). The vote has been rescheduled to March 24, 2026, due to a lack of quorum at the initial meeting. The companies remain committed to the all-stock deal, valued at approximately $1.3 billion.
The all-stock transaction, initially agreed upon in December, would see Two Harbors shareholders receive 2.3328 shares of UWM Holdings Corporation (UWMC) Class A common stock for every share of Two Harbors they own. This values the deal at roughly $1.3 billion. However, the recent decline in UWMC’s stock price, down approximately 26% since the deal was announced, has raised concerns among analysts. Experts from Keefe, Bruyette & Woods noted that an increase in the acquisition price might be necessary for the deal to gain Two Harbors shareholder approval.
In a move that could influence shareholder sentiment, UWM recently revised its revenue guidance upwards. The company now anticipates total revenue between $800 million and $900 million for the first quarter of 2026, and between $3.5 billion and $4.5 billion for the full year. This revised forecast is higher than the previous projection of $650 million to $850 million for Q1 and surpasses analysts’ consensus estimates.
Since the acquisition announcement, both UWM and Two Harbors shares have experienced declines. UWMC shares closed at $5.12 on December 12 and were trading around $3.68 as of Monday morning, while Two Harbors shares fell from approximately $10 to $8.99 during the same period. Despite market volatility, some analysts, like Eric Hagen from BTIG, remain “relatively confident” in the merger’s approval, citing the strategic benefits for Two Harbors in merging with a scaled originator to enhance its competitive position and manage prepayment risk.