Advocat (AVCA) up 70% on $8.50 takeover offer. AVCA is SNF focused - not even private pay AL/IL and PE is still paying up. Bodes well for FVE and sector.
FVE was $8.50 about 12 months ago. Just a 200 basis point increase in occupancy would increase EBITDA about 50% and EPS about 100% for FVE. Either FVE gets there through execution or consolidation. When FVE eventually gets occupancy back into the 90s, there is tremendous upside for someone.Two days ago, AVCA was hitting a 2 year low. Today, they are at a new high. It can happen suddenly and unexpectedly.
Great catch thank you.
msears - I think it is $8.50 per share which is about $50 million plus $30 million of debt that AVCA already has on their balance sheet. Total enterprise value is about $80 million.
pretty nice premium..for 20 million in equity.. rumer says they even prepared to go higher...thats like getting an offer of $8.50 a share for FVE tomorrow... can you say..sold
Total shareholder equity stated at 20 million.. 50 is the offerhttp://www.sec.gov/cgi-bin/viewer?action=view&cik=919956&accession_number=0001193125-12-222199&xbrl_type=v#
The offer appears to be about 14x EBITDA and 250x EPS. Another indication that EBITDA is more meaningful than EPS.FVE is in a better sector and is at only about 6x EBITDA and is flat today after being down basically every day for the last two weeks. How wonderful and exciting.
SNH must really be getting nervous.. watching their back from VTR sneaking up from behind..and watching forward someone else moving on FVE...between the devil and the deep blue sea
*$8.50 all cash.....board rejected 100% premium..wow this sounds like Mkkay