Acquisition of American Realty Capital Healthcare Trust, Inc. by Ventas, Inc. May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of American Realty Capital Healthcare Trust, Inc. (NASDAQ: HCT) by Ventas, Inc. (NYSE: VTR). On June 2, 2014, the two companies announced the signing of a definitive merger agreement pursuant to which American Realty shareholders will receive $11.33 in cash for each share of common stock owned.
Is the Proposed Acquisition Best for American Realty and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at American Realty is undertaking a fair process to obtain maximum value and adequately compensate American Realty shareholders.
On May 13, 2014, American Realty released its financial results for the first quarter 2014, reporting substantial increases in revenues, funds from operations (FFO), and adjusted funds from operations (AFFO). Specifically, American Realty reported a 199% increase in revenue, from $18.7 million in the first quarter of 2013 to $56 million in the first quarter of 2014 as well as a 173% increase in FFO between the first quarters of 2013 and 2014, from $8 million to $21.8 million. AFFO also increased 159% over the first quarters of 2013 and 2014, from $9.6 million to $24.9 million.
Commenting on the first quarter results, Thomas D’Arcy, American Realty’s Chief Executive Officer stated, “We are off to a tremendous start for the year. Our year-to-date investing activities have enabled us to fully deploy all of the capital we raised prior to our recent public listing. With our current investment pipeline, and a balance sheet to support our growth, we are right on track to reach our stated goal of acquiring $400 to $600 million during the balance of 2014.”
In light of these facts, Robbins LLP is examining American Realty’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
American Realty shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
American Realty shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.