Extendicare to spin off assisted living unit, convert itself into trust
In a move to boost shareholder value, Extendicare Inc. disclosed on Wednesday that it will spin off one of its units and convert its remaining business into a real estate investment trust.Extendicare plans to spin off its Assisted Living Concepts unit. It will transfer 29 facilities to the unit, for a total of 206 sites in 17 states, according to a statement released by the company. It will then convert the rest of its company into Extendicare REIT. The company operates 438 nursing homes and assisted living facilities in the U.S. and Canada.
The Ontario-based nursing home chain said in February it would sell itself or reorganize to boost shareholder value. Its stock price fell following the purchase of the assisted living unit in Feb. 2005. The price did not reflect the company's worth, officials said. The trust will stay on the Toronto exchange. Extendicare's Class A shares fell 5.2% in trading Wednesday morning on the Toronto Stock Exchange.