BayBridge Seniors Housing Inc, owned by the Ontario Teachers’ Pension Plan Board, is taking luxury senior homes operator Amica Mature Lifestyles Inc (ACC.TO) private for $578 million.
Amica’s shares more than doubled to a record high of $18.70 in late morning trading on Wednesday, just shy of the offer price of $18.75 per share in cash.
Vancouver-based Amica has 26 luxury seniors residential properties across Ontario, British Columbia and Alberta.
BayBridge Seniors Housing, along with its management company BayBridge Senior Living, owns and operates 35 senior living communities in Canada and six in the United States.
Update: The transaction is led by the Long-Term Equities group of Teachers’ Private Capital, the private equity investment arm of the Toronto-based pension fund manager, according to a statement. It is subject to a vote by Amica’s shareholders in October.
Canada Pension Plan Investment Board (CPPIB) said last month that it will form a joint venture with Health Care REIT Inc, which operates senior housing centers in the United States, as aging population and increasing demand for health care attract investments to the sector.
Ontario Teachers’, which has been looking to diversify its investments, agreed in June to buy Cenovus Energy Inc‘s (CVE.TO) portfolio of oil and gas royalty properties for about $3.3 billion.
Canaccord Genuity Corp is Amica’s financial adviser, while Gowling Lafleur Henderson LLP is its legal counsel.
CIBC World Markets Inc is BayBridge’s financial adviser and Stikeman Elliott LLP is its legal adviser.
(Reporting by Shubhankar Chakravorty in Bengaluru; Editing by Kirti Pandey)
(This story has been edited by Kirk Falconer, editor of peHUB Canada)
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