Tuesday, April 21st5.0°C
25924
24949

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




Recent Trending




Today's Market
S&P TSX15412.60+52.05
S&P CDNX703.65+0.80
DJIA18034.93+208.63
Nasdaq4994.60+62.79
S&P 5002100.40+19.22
CDN Dollar0.8180+0.0004
Gold1193.40-0.10
Oil56.22-0.16
Lumber247.70-0.70
Natural Gas2.553+0.017

 
Okanagan Companies
Pacific Safety0.115-0.005
Knighthawk0.010.00
QHR Technologies Inc1.42+0.02
Cantex0.035+0.005
Anavex Life Sciences0.385+0.055
Metalex Ventures0.085+0.010
Russel Metals27.42-0.06
Copper Mountain Mining1.10-0.03
Colorado Resources0.11+0.01
ReliaBrand Inc0.005+0.001
Sunrise Resources Ltd0.04+0.00
Mission Ready Services0.185+0.010
Decisive Dividend Corporation1.80+0.15

 



25790

FEATURED Property
2215394#25 7760 Okanagan Landing Road
3 bedrooms 3 baths
$639,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Calling on your help!

Has the internet flattened prices as predicted? Has the internet created opportunities for your business to find higher priced markets further afield? Is posting prices on your website a good thing o...


Living with Plan B

“It does not do to leave a live dragon out of your calculations, if you live near him.”― J.R.R. Tolkien, The Hobbit Photo: Thinkstock.comHuman beings are optimists by nature. Whether...


Reverse mortgage solution

With the housing and financial markets on solid footing, some retired Canadians may consider cashing in their growing assets to enjoy vacations and major home renovations. Others, on the other hand, a...

_



25979

26091


Member of BC Press Council


25770