11th Mar 2025 14:15
(Alliance News) - Care REIT PLC on Tuesday said it has agreed the terms for a potential takeover by a US real estate investment trust focused on seniors housing and healthcare-related properties, CareTrust REIT Inc.
Care REIT is a real estate investment trust focused on care homes and other healthcare properties in the UK.
Under the terms of the possible acquisition, Care REIT stakeholders would be entitled to receive 108 pence per share, which values the entire trust's share capital at around GBP448 million. This represents a 33% premium to Care REIT's closing price of 81.3p on Monday.
Care REIT shares on Tuesday afternoon were trading up 33% at 108.40p each in London.
The trust deemed the takeover price "fair and reasonable".
"Despite our operational progress, Care REIT PLC has traded significantly below its net asset value over the last few years, with no sign of this improving in at least the short to medium term. This has made it almost impossible for Care REIT to raise new capital to grow the business," said Care REIT Chair Simon Laffin.
"Becoming part of the USD5 billion CareTrust would enable the business to grow and to play a larger role in the UK's fragmented residential care sector. This would benefit both tenants and residents, as more investment will be available to both enhance our existing care homes and develop much needed new ones in the UK."
Care REIT recommends that shareholders approve the acquisition.
CareTrust President & Chief Executive Officer Dave Sedgwick said: "We have been following the UK for some time looking for the right entry point. We believe we have found it in the Care REIT platform, which has assembled what we consider to be an excellent, diversified portfolio of UK assets and operator partnerships."
By Emily Parsons, Alliance News reporter
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