Extendicare gets green light from shareholders to reorganize
Shareholders of Extendicare Inc. have approved its plan to spin off its Assisted Living Concepts Inc. unit and convert the remainder of the company into a real estate investment trust.As part of the reorganization, the REIT will continue to operate Extendicare's U.S. and Canadian nursing home businesses, as well as some assisted living homes and related businesses. Assisted Living Concepts will own and operate almost all of the seniors' residences in the U.S.
Extendicare, which is based in Ontario, disclosed its reorganization plans in June. Earlier in the year, it said it would sell itself or reorganize to boost shareholder value. Extendicare operates a total of 438 nursing homes and assisted living facilities in North America.