Saturday, November 22nd-1.9°C
22246
22916

Ventas buying American Realty Capital Healthcare Trust in $2.6B cash-and-stock deal

NEW YORK, N.Y. - Real estate investment trust Ventas is purchasing American Realty Capital Healthcare Trust Inc. in a cash-and-stock deal that the companies valued at about $2.6 billion.

The companies each own medical care offices as well as other real estate properties.

Ventas Inc. will pay $11.33 per ARC Healthcare share, a 14 per cent premium to its Friday closing price of $9.95.

ARC Healthcare shareholders can choose to receive 0.1688 Ventas common shares or $11.33 in cash for each common share of ARC Healthcare they own. The cash portion of the deal is subject to a cap of 10 per cent of ARC Healthcare's outstanding shares.

ARC Healthcare stockholders are expected to own approximately 8 per cent of Ventas' 321 million outstanding shares once the acquisition is complete.

Both companies unanimously approved the transaction, which is targeted to close in the fourth quarter. It still needs approval from ARC Healthcare stockholders.

ARC Healthcare's stock surged $1.10, or 11.1 per cent to $11.05 in morning trading Monday. Ventas shares fell $1.45, or 2.2 per cent, to $65.35.

Ventas also announced that it is buying 29 independent living seniors housing communities in Canada from Holiday Retirement for $980 million Canadian dollars (approximately $900 million) in cash. That deal is expected to close in the third quarter.

The transactions are expected to be immediately add to Ventas's 2015 normalized funds from operations by at least 10 cents per share. Funds from operations, or FFO, are considered key to measuring the financial performance of real estate investment trusts. FFO adds items such as amortization and depreciation back to net income.

The Canadian Press


Read more Business News

22899


Recent Trending




Today's Market
S&P TSX15111.13+35.95
S&P CDNX789.135.56
DJIA17810.0691.06
Nasdaq4712.97+11.102
S&P 5002063.50+10.75
CDN Dollar0.8901-0.0002
Gold1201.50+10.60
Oil76.72+0.87
Lumber331.50+4.50
Natural Gas4.236-0.253

 
Okanagan Companies
Pacific Safety0.155-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.30+0.03
Cantex0.04+0.005
Anavex Life Sciences0.178+0.008
Metalex Ventures0.03+0.005
Russel Metals31.62+0.82
Copper Mountain Mining2.24+0.06
Colorado Resources0.125-0.015
ReliaBrand Inc0.013-0.002
Sunrise Resources Ltd0.050.00
Mission Ready Services0.35+0.015

 
24130


24041

FEATURED Property
2134117124 - 4035 Gellatly - Canyon Ridge
2 bedrooms 2 baths
$305,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...


Be quiet already!

No, you’re not crazy. There really are voices in your head. Voices that keep you from doing what you need to do during your customer care calls. It can be the voice of your teachers, your parent...

_



24156

24119


Member of BC Press Council


22842