Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Check out the latest MedEquities Realty Trust and Omega Healthcare earnings call transcripts.
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 (OHI 0.01%).
Here are the key details of the agreement:
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.