MedEquities (MRT) Alert: Johnson Fistel Investigates Proposed Sale of MedEquities Realty Trust; Are Shareholders Getting a Fair Deal?

SAN DIEGO, Jan. 2, 2019 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP has launched an investigation into whether the board members of MedEquities Realty Trust MRT ("MedEquities") breached their fiduciary duties in connection with the proposed sale of the Company to Omega Healthcare Investors, Inc. OHI ("Omega").

On January 2, 2019, MedEquities announced that it had signed a definitive merger agreement with Omega. Under the terms of the agreement, MedEquities stockholders will receive a fixed exchange ratio of 0.235 Omega common shares plus $2.00 in cash for each share of MedEquities common stock held by them, which represents a value of $10.26 per MedEquities share based on the $35.15 closing price for Omega common stock on December 31, 2018. However, shareholders will be subject to the future price fluctuation of Omega's stock price. Additionally, MedEquities will declare a special dividend of 21 cents a share in cash, which will be payable to shareholders of record on the day immediately before the date of closing.

The investigation concerns whether the MedEquities board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for MedEquities shares of common stock. Nationally recognized Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given that one Wall Street analyst has a $12.00 price target on the stock and analysts' projections for future earnings and revenue growth. The 52-week high for MedEquities was $12.04.

If you are a shareholder of MedEquities and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number.

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About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com

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SOURCE Johnson Fistel, LLP