Shares of MedEquities Realty Trust (NYSE: MRT), a real estate investment trust focused on healthcare properties, jumped 45% as of 11:55 a.m. EST on Wednesday after the company announced that it has accepted a buyout offer from Omega Healthcare Investors (NYSE: OHI).
Continue Reading Below
Here are the key details of the agreement:
- The transaction values MedEquities at $600 million, or $10.26 per share.
- The deal will be paid for with cash and stock. MedEquities' shareholders will receive 0.235 shares of Omega common stock plus $2 in cash for each share they own.
- The transaction is expected to close in the first half of 2019. There are no financing contingencies, and the deal doesn't require the approval of Omega's shareholders.
MedEquities CEO John McRoberts commented: "This is a very compelling transaction for MedEquities' stockholders. We believe going forward that our stockholders will be in an excellent position from having an investment in Omega's diversified portfolio."
Omega's CEO Taylor Pickett also expressed his enthusiasm for the deal:
"John and his team have built a high quality diversified portfolio, which should provide Omega with meaningful future growth opportunities. This acquisition reinforces our commitment to the skilled nursing and senior housing industry, while adding new asset types to our portfolio furthering our strategic objectives."
This looks like a done deal since the transaction is not subject to approval by Omega's stockholders and doesn't involve any financing contingency. Since the transaction is being financed with stock, MedEquities investors will have to decide for themselves whether they want to sell today and book the gain, or become Omega shareholders.
Either way, MedEquities shareholders are off to an excellent start to 2019.
10 stocks we like better than MedEquities Realty Trust, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and MedEquities Realty Trust, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018