Ventas, Inc. (VTR) and Nationwide Health Properties Inc. (NHP) announced that they would pay prorated dividends on their respective common stocks for the current quarter, conditioned upon the impending merger of the two companies. The dividends would be payable in cash to stockholders on the last business day prior to the date on which the merger becomes effective. The merger is expected to close on or after July 1, 2011, pending approval of the companies’ shareholders
Both the companies stated the dividends would be based on their last dividend rates, i.e. 57.5 cents per share at Ventas and 48 cents per share at Nationwide. In each case, the dividend amount payable will be the rate multiplied by the number of days from the date, on which the last dividend was paid, to the day before the sale closes, and divided by 91 days in the quarter. The last dividend was paid on June 10, 2011 at Ventas and on May 20, 2011 at Nationwide.
Ventas announced the acquisition of Nationwide for $7.4 billion in an all-stock deal that would make Ventas a leading health care real estate investment trust (REIT)by value. The combined company's shareholders are expected to benefit from stable and secure dividend payments by both the companies.
Ventas has a portfolio of 600 healthcare-related facilities, strategically located in 44 states (including the District of Columbia) and two Canadian provinces.
Ventas is primarily engaged in the business of financing, owning and leasing healthcare related and senior housing facilities. The company has one of the largest and most diversified portfolios in the healthcare sector, with exposure to all types of facilities. The product diversity of the company allows it to capitalize on opportunities in different markets based on individual market dynamics, and provides a hard-to-replicate competitive advantage over its peers
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