The joint venture between Formation Capital LLC and JER Partners has raised its bid to acquire the locally based healthcare REIT for a second time. It has offered to amend a merger agreement struck this January and lift the purchase price to $65.25 per share. This matches a bid submitted days ago by San Francisco-based Fillmore Capital Partners LLC.
The initial Formation/JER offer was for $63 per share of Genesis stock. Following objections to the bidding process, the JV upped the ante to $64.25 per share on April 19, and Cia Buckley, president of JER's US fund business, and Arnold Whitman, Formation's CEO, issued a statement calling that a "best and final" price. That was before Fillmore jumped in.
Under the JV's most recent proposal, if the transaction is not completed before July 31, the price will increase by 9% per year, or $0.01609 per day, beginning July 31 until the transaction closes. Under the terms of the Fillmore proposal, its offer price will increase by 6% per year, or $0.01073 per day, beginning Aug. 15 until the transaction closes.
The Genesis board is reviewing both offers. "At this time, the board's recommendation in favor of the Formation/JER transaction is unchanged," the company says in a statement. Since the bidding war began, GHCI common stock on the Nasdaq hit a 52-week high of $65.21 per share. Shares opened at $65.16 on May 1, which compares with a 52-week low of $43.72 per share.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
