VTR - Why New Senior Investment Stock Rocketed 28% at the Open Today
Shares of New Senior Investment Group (NYSE: SNR) rose dramatically as trading got under way on June 28. Within the first few minutes of trading the real estate investment trust's (REIT) shares were higher by just under 28%. The big news was a deal with industry giant Ventas (NYSE: VTR) .
To sum it up quickly, Ventas is buying New Senior as it looks to double down on what it expects to be a rebound in demand for senior housing following the pandemic-driven industry downturn in 2020. It is an all-stock deal in which New Senior shareholders will receive 0.1561 shares of Ventas stock for each share of New Senior they own. The value is roughly $9.10 per share, a 30% premium to New Senior's average share price over the previous 30 days. Ventas believes the deal will be $0.09 to $0.11 accretive to normalized funds from operations (FFO) per share.
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Why New Senior Investment Stock Rocketed 28% at the Open Today