Ventas, Inc. (NYSE: VTR) and New Senior Investment Group Inc (NYSE: SNR) announced that they have arrived into a conclusive union covenant. Under the terms of the agreement, Ventas will purchase New Senior in an all-stock deal, prized at around $2.3 billion, counting $1.5 billion of New Senior liability.
New Senior stockholders will obtain 0.1561 stocks of newly distributed Ventas stock
Under the footings of the contract, New Senior stockholders will obtain 0.1561 stocks of newly issued Ventas stock per share of New Senior common stock. Founded on the final price of Ventas common stock on June 25, 2021, this signifies about $9.10 per New Senior share. It is a 31% equity premium founded on New Senior’s 30-day interchange average and a 10% premium on New Senior’s entire business value.
The Deal evaluation is projected to signify around a 6% capitalization rate on projected New Senior 2022 Net Functioning Income. It is projected to be around $0.09 to $0.11 accretive to Ventas’s regularized coffers from actions per share on a full-year foundation.
“Constructing on the robust impetus we are facing in our industry, we are pleased to reveal this planned and accretive purchase with New Senior. It swells Ventas’s spot in senior lodging at an imperative modulation point in the sequence as the senior lodging business ricochets,” said Debra A. Cafaro, Ventas Chairman, and CEO.
Tactical and Monetary Reimbursements of the Deal
Augments Ventas’s senior lodging situation at a recurring modulation point in the progress of the anticipated influential senior lodging business reclamation
The Deal expressively enlarges Ventas’s contribution to the healthy senior lodging recovery through its Senior Housing Operating range. With strong demand from a swiftly growing populace of seniors, the new building at recurring lows, and the crib of the COVID-19 epidemic behind us, independent living senior lodging is prepared for exciting growth.
Senior lodging new building drifts are promising, with new building starts at the lowermost level since 2011.