TORONTO – GT Canada Medical Properties Real Estate Investment Trust (TSXV:MOB.UN) is being acquired by privately held NorthWest Value Partners Inc. in a deal that values the company at some $30 million.
Under terms of the agreement, NorthWest will pay $2.05 per unit for each of GT Canada’s 14.7 million units, subject to an adjustment dilution from a previously announced $4.5-million rights offer.
On March 30, the REIT announced a rights offering, which expires April 24 – giving unitholders one right for each unit held. Four rights entitles the holder to purchase one unit at $1.15 per unit. That was an 18 per cent discount from the average closing price on the previous 20 trading days.
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Meanwhile, as a condition of the NorthWest takeover offer, GT Canada’s existing portfolio of eleven medical office buildings, as well as a 25,313-square-foot, fully leased medical office building in Port Hope, Ont., being acquired by GT on May 1 will be sold to NorthWest Healthcare Properties REIT (TSX:NWH.UN) for $87.3 million on terms consistent with the offer.
Northwest Healthcare is a subsidiary of NorthWest Value Partners.
“This is a great opportunity for GT Canada unitholders,” said GT Canada CEO Andrew Shapack. “The transaction provides liquidity, good value and affirms our disciplined focus on creating a portfolio consisting exclusively of medical office properties.”
The company said that its board of trustees, on the recommendation of its special committee, has unanimously determined that the offer and accompanying sale of the GT Canada portfolio is in the best interests of all unitholders.
The Northwest offer of $2.05, which is subject to acceptance by the holders of at least two-thirds of GT Canada units, represents a 61.4 per cent premium to the closing price of $1.27 on the TSX Venture Exchange on Friday, April 13.
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