Market Overview

Will A Buyer Breathe New Life Into Brookdale Senior Living?

Will A Buyer Breathe New Life Into Brookdale Senior Living?

Zhonghong Zhuoye Group Co Ltd, a Chinese real estate group, is in acquisitions talks with Brookdale Senior Living, Inc. (NYSE: BKD), according to a Reuters report.

Zhonghong has supposedly made a $3 billion offer, making the deal potentially the largest U.S. senior care acquisition by a Chinese company.

Reuters’ sources said a deal is not certain yet, and a Brookdale spokesperson told Benzinga, "We cannot comment on market rumors or speculation."

Brookdale shares were up over 10 percent in Wednesday’s pre-market session, the highest since late-January. The stock traded recently around $15.17.

Zhonghong is the latest in a string of potential suitors for Brookdale this year, following Blackstone Group LP (NYSE: BX) and Ventas, Inc. (NYSE: VTR).

Buyout Rumors In 2017

On January 10, Blackstone was said to be in talks with Brookdale. A sale was encouraged by activist investor Land and Buildings.

The news pushed Brookdale shares up 20 percent in the following day.

The rumor was revived in early February, when Brookdale announced it would be skipping the RBC conference due to a “scheduling conflict,” and Blackstone declined to comment.

On February 16, Ventas was said to be in talks to acquire part or all of Brookdale after Blackstone lost interest, according to the Wall Street Journal.

Ventas already owned 140 properties used by Brookdale, which accounted for 5 percent of revenue.

Investors did not react favorably though, with Brookdale shares falling 7.6 percent on the news.

Ventas announced on March 6 it was not in talks with Brookdale, sparking a three-week decline in share price by 15.4 percent.

Related Links:

Wall Street's M&A Chatter From June 13: Brookdale, Etsy, Roche-Tesaro

6 Deals Are Live In Chemical Sector: Where Do They Stand?

Posted-In: Zhonghong Zhuoye Group Zhonghong Zhuoye Group Co LtdM&A News Rumors Movers Best of Benzinga


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