According to Yahoo Finance, the MRT stock is a trending ticker of the day. That’s not surprising though, considering the stock is up nearly 50%.
MRT Stock and a $600 Million Acquisition
On Wednesday, January 2nd, news surfaced that Omega Healthcare Advisors (NYSE:OHI) will acquire MedEquities Realty Trust (NYSE:MRT) in a transaction valued at $600 million. It’s important to note the transaction is a cash-and-stock deal.
On the news, MRT stock jumped, while OHI stock dropped. At the time of writing, MedEquities Realty Trust is trading at $9.89, putting the stock up 44.59%. OHI stock is currently down 3.67%. Its trading price is $33.86.
What We Know
MedEquities CEO John McRoberts called this a “very compelling transaction for MedEquities’ shareholders,” and for that reason, it’s crucial for shareholders (and all investors, actually) to know as much about the transaction as possible.
Under the terms of the cash-and-stock transaction, shareholders of MedEquities will receive $2.00 in cash. Further, they will receive 0.235 Omega shares for each MRT share owned. “We believe going forward that our stockholders will be in an excellent position from having an investment in Omega’s diversified portfolio,” explained McRoberts.
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Meanwhile, despite OHI stock entering the red zone, Omega Healthcare Advisors CEO Taylor Pickett believes this acquisition will provide “meaningful future growth opportunities” for the company. More details can be found here.
The Companies
For those who don’t know, MedEquities is a self-managed company that invests in a variety of healthcare properties. It also invests in healthcare-based real estate debt investments. MRT has a presence in South Carolina, California, and Texas.
Omega Healthcare is a healthcare facility real estate investment trust, which focuses mainly on the US real estate market. It’s based in Boca Raton, Florida.
The Takeaway
As the month progresses, real estate investors and healthcare investors may want to keep a close eye on this acquisition, as well as on MRT stock.
Featured Image: Depositphotos © pichetw
