Sunrise Gives Nod for C$2.3B Takeover

TORONTO-US-based healthcare REIT Ventas Inc. plans to close within a week on its acquisition of Sunrise Senior Living Real Estate Investment Trust. The timetable was provided after approval of the sale during a special meeting of Sunrise shareholders this morning, in which 78% of shareholders approved the merger, according to reports.

“We are extremely pleased with the outcome of today’s vote,” Ventas CEO Debra Cafaro says in a release, “We look forward to leveraging the benefits of this acquisition to continue generating superior returns for our shareholders.” Besides acquiring 77 senior living communities as part of the deal, Cafaro says the “compelling nature” of the sale gives Ventas access to an exclusive development pipeline, provides entry into the Canadian seniors housing market, and “should result in excellent growth going forward.” Of the 77 properties changing hands, 11 are in Canada and the remainder in the US.

The anticipated closing next Thursday would end a protracted effort by Ventas to assume control of Sunrise, a campaign that began in January when the Kentucky REIT won the rights to buy its Canadian counterpart via an auction. The initial bid was C$15 per share, but the takeover was interrupted when rival Health Care Property Investors Inc. Health Care Property Investors Inc. entered a late minute proposal offering C$3 per share more than Ventas. The attempt ended at the steps of the Ontario Hall of Justice, with courts ruling and later affirming that Ventas should be allowed to complete the purchase. HCPI was rebuffed from making any bids for Sunrise for at least 18 months, and Ventas filed a suit earlier this month against Sunrise. Based in Long Beach, CA, HCPI has 337 senior living projects and hundreds of medical offices and health-care related facilities.