ABP Acquisition to Acquire AlerisLife for $1.31 Per Share
AlerisLife Inc. (Nasdaq: ALR) has agreed to be acquired by ABP Acquisition LLC for $1.31 per share, an 85% premium over its recent average price of $0.71. The total transaction value is approximately $43.8 million, with no financing conditions attached. ABP, controlled by ALR's managing director Adam Portnoy, owns about 6.1% of ALR's shares, while Diversified Healthcare Trust (DHC) holds approximately 31.9% and has consented to the deal. The tender offer is expected to launch soon, with the completion aimed for Q1 2023. The acquisition has been unanimously approved by ALR's Board of Directors, with Citigroup as the financial advisor.
- 85% premium to recent share price enhances shareholder value.
- Transaction has unanimous board approval, indicating strong governance.
- No financing condition streamlines the acquisition process.
- Potential distraction to management from ongoing business operations during the acquisition process.
- Risk of unmet closing conditions for the tender offer or merger.
Purchase Price Provides Shareholders with an
to Average Share Price of Last 30 Trading Days
ABP plans to acquire ALR through a tender offer which will be subject to, among other things, a number of shares being tendered in the tender offer that, together with the shares owned by ABP and its affiliates, represent a majority of ALR shares. ABP together with its affiliates currently own approximately
The transaction was unanimously recommended by a special committee of the ALR Board of Directors comprised entirely of independent directors and approved by the ALR Board of Directors. The special committee engaged
About
Additional Information and Where to Find It
The tender offer referred to in this communication has not yet commenced. The description contained in this communication is neither an offer to purchase nor a solicitation of an offer to sell any securities, nor is it a substitute for the tender offer materials that ABP will file with the
Cautionary Statement Regarding Forward-Looking Statements
This communication includes forward-looking statements that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those implied by the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including all statements regarding the intent, belief or current expectation of ALR and members of its senior management team and can typically be identified by words such as “believe,” “expect,” “estimate,” “predict,” “target,” “potential,” “likely,” “continue,” “ongoing,” “could,” “should,” “intend,” “may,” “might,” “plan,” “seek,” “anticipate,” “project” and similar expressions, as well as variations or negatives of these words. Forward-looking statements include, without limitation, statements regarding the tender offer for ALR (the “Offer”) and the second-step merger with ALR, with ALR continuing as the surviving corporation (the “Merger”); and the accuracy of any assumptions underlying any of the foregoing. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those currently anticipated due to a number of risks and uncertainties. Risks and uncertainties that could cause the actual results to differ from expectations contemplated by forward-looking statements include: the possibility that various closing conditions for the Offer or the Merger may not be satisfied or waived the effects of the Offer or the Merger (or the announcement thereof) on relationships with customers, vendors, other business providers and relations or governmental entities; the risk that the Merger will divert management’s attention from ALR’s ongoing business operations; changes in ALR’s businesses during the period between now and the Offer Acceptance Time; risks associated with litigation; and other risks and uncertainties , including those noted from time to time in documents filed with the
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