June 18 (Reuters) - Health Care REIT Inc and Revera Inc agreed to buy assisted living services provider Regal Lifestyle Communities Inc for about C$374.4 million ($308.5 million) in cash to expand in Canada.
The companies will pay C$12 for each of Regal's outstanding shares, a premium of 27.1 percent to the stock's closing price on Wednesday.
The equity value of deal, which is expected to close in the second half of the year, is based on 31.2 million Regal shares outstanding, according to Thomson Reuters calculations.
The deal has an enterprise value of C$766 million, Health Care REIT and Revera said.
Regal operates 23 senior housing communities, including 13 in Ontario, seven in Quebec, and one each in British Columbia, Saskatchewan and Newfoundland. It gets about 83 percent of its net operating income from Toronto, Montreal, Ottawa and Vancouver.
The deal is expected to be immediately accretive to funds from operations and funds available for distribution per share, Health Care REIT and Revera said.
With the increased news of large mergers on the Forfront in the healthcare sector.... The summer months should be very interesting.
Jonsey.......If Portney was nt involved we be trading at a market cap higher than CSU...sheshhh boy...that's 4x folds higher than we are.....We have altleast 150 million more in shareholder equity according to the sec filings...yet trade at a 600 million dollar discount to its closest most related peer..... Are you getting me yet boy..... the Portney discount should be 25% ...not 400%.... That's why we're going higher...much higher over the next few quarters.
Time to unload a few more of ours.........
Jonesey.... have you recoved from your weekend bender? now back up the truck...i expect mckays BI platform to send us passed 10 million EBITDA for Q2..... call be bullish on the stock price.
jonesy...you be been overloading that C Pipe again...gentle hits my friend....Jefferies have been around FVE since the days of Baby Jesus....I don't really pay much attention to what the say...I knew FVE was buy once there financials were set in order...and McKay went to a live steam BI system...for financial compliance ....
Yes should have been done years ago......
turn around happen in three stages....I do believe we have a lot up upside yet...obviously so does Jefferies.
Like i said the 10:1 just solidifies Portneys Hold on all available options associated with all these reits...
he was never going to give a window of losing control..he lost Commonweath..that put a scare into him.....
Something must have come forth that said he was vunerable as the status Quo.... So now he has Skin in the game on all fronts... If VTR comes a knocking friendly or hostile...Portney wins on both sides.
Its really not much of a factor in the grand scheme of thing..... i dont really thing RMR is worth 340 million..but portney some how...squeezed his lackies into igning off on it..... O.K we'll see..if the deal can be accreative and not delutive...Maybe it was a good move for all.... 46 million for SNH is a drop in the bucket in the big picture..and really the amount means nothing... What i hate to see though is Portney once again finding ways to manipulate and put money directly into his pocket.... The voting structure of so many classes and portney holding a 91% of all voting shares..tells me he's not done yet done manipulating.... I think there more to come...Someone must have come knocking at portney's door and the lights came on... he's finding ways to increase his stock holdings in the reits for a reason.
KKR, Beecken Petty O’Keefe & Co. and Coastwood Senior Housing Partners
Announce Agreement to Invest In Sunrise Senior Living Management Company
New York, NY, Sept. 14– Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”),
Beecken Petty O’Keefe & Company (“BPOC”) and Coastwood Senior Housing Partners LLC today
announced the signing of a definitive agreement to acquire the management company business
of Sunrise Senior Living, Inc. (“Sunrise”), a leading provider of senior living services and housing,
for approximately $130 million. Health Care REIT (“HCN”) will also invest approximately $26
million for a 20% interest in the business. The acquisition is expected to close immediately
prior to HCN’s previously announced acquisition of Sunrise discussed below.
“This partnership with KKR, BPOC and Coastwood is a major step forward for our transaction
with Health Care REIT,” said Mark Ordan, Sunrise’s chief executive officer. “All of us at Sunrise
are excited by the opportunity to move forward with this next chapter in our story, and to
continue Sunrise's proud traditions of care and service to our residents.”
On August 21, Sunrise entered into a binding agreement with HCN pursuant to which HCN
committed to acquire all of the outstanding shares of Sunrise for $14.50 per share. HCN will
proceed with the acquisition of Sunrise’s real estate.
The management company being acquired will include Sunrise’s existing management contracts
covering 282 communities, including those communities to be acquired by HCN; leasehold
interests in 15 communities; and 12 development parcels. In addition, as of the closing, a
subsidiary of the management company will employ all employees of Sunrise and operate
under the “Sunrise” name and brand.
“Sunrise has a culture and team that is committed to the highest stand
When HCN privitized certain management operations in the Sunrise Seniors aquisition..its was for 80 million area..... Portney has effected claimed 325 million in managent cap ex...and attained 150 million effective for himSelf...Nobody really knows what his plans arenext . my biggest concern is weather he plan to break down diiferetn class structures with RMR...with different Dividend allocations.... No one can stop him if he does.
I basicly see this transaction as a way for portney to monitize his holdings of RMR at an elevated premium... private equity was not going to offer him anything as a private deal, so he effectively got payed 150 million from varies shareholders for managent company with no assets and long duration contracts that may be questionable on weather there legal in nature..... having said that...Portney will now have skin in the game for his next pay day...trying to unlock shareholder value.... the 10:1 vote class just enshured he'll get the final say on any deal...is there very much in RMR that will interest portney? He might get a close-up bonus...on his remaining 51%.... but i see it..we basicly open up an opportunity to unlock the some shareholder value in all these assets that are discounted hugely... That will be portneys next pay-day
i guess thats they key here.... they say a series of banks o.k the deal as advisors to the reits...
No real discloser on that on any filings...
I see it as portney partly protecting himself on both sides of the equation..takes a quick 150 million for himself..in Stock....meaning he now has a big upside potential if the Reits are sold and shareholder value is unlocked.... he also locks in some value that was otherwise circumstancial or suspect in the value of RMR.
Show shareholder the money is the key now... can we benefit on the investment we made on owning shares of RMR..... Will private equity want a shot at taking RMR private?
Come on Jonsey..get on board..i'll hold your hand until we break $6...then you'll have to take the Training Wheels Off......
Mckay's new dash board BI is flashing green lights all around...... The next gap-Up is comming soon.
Jonesey.... you talk about a $2 stock price...have you actually gone online and looked at some of these Mansions FVE owns outright.... have you Forgotten the value of the former Sunrise Seniors Housing. We own outright 30..and we operate another 90.... We are realiticly the secound biggest operator in the entire u.S..public or private....BKD has the top spot... We are a $15 dollar stock on realestate replacement value alone.
Could be something bigger brewing here now... the market endorsed the deal yearterday..today big sell off... portney retained 91% of the voting rights of the new RMR... and used SNH's stock to bank roll part of his exit stratergy....the question is really..how much return will SNH get on their 46 million dollar investment... i question when will this be released?...Will it be acrreative ..
Portney is giving an opportunity to see inside RMR now..with full discloser.... Eventually he'll look to extract another 150 million in RMR for a sale... and look for 50-100% premium on his Reit holdings....Putting his total ROE at a minimum of 450 million..maybe more.
this is only possible in a low interest rate environment...where big Reits can take advantage of cheap money...
Portney of all people are aware of this.... The window of opportunity is closing for portney with yellan clearly signalling a move to tighen.... I think portney already knows his number.
Portney took all 150 million in stock...from SNH, Gov,Sir, ect....
All on a 20 day price......
this guy just leveraged himself into the drivers seat for a great big pay day....on a block buster deal....
he basicly just bought $ 46 million worth in SNH @$20 a share.
He already knows he can un lock that at $40 Whenever he wants to.
He took all the 150 million in REIT stock..Rhe biggest 2.3 million alone fron SNH...
20 day ave price over the month.....
that 20 year agreement was always in place...might have been 10 before.... Portney. Is a greasy devil...He basicly unloaded 1/2 of RMR for 150 million up front....If VTR wants to comea calling they have to go through Portney now..and a publicly traded and owned RMR...pay Portney whatever it takes...Everyone has a price...He has his.