Ontario appeals court rules for Ventas in Sunrise REIT acquisition fight
Ventas Inc. has won another round in its attempt to acquire Sunrise Real Estate Investment Trust.The Ontario Court of Appeal on Friday dismissed the appeals of Sunrise REIT and Health Care Property Investors Inc., which had also bid for Sunrise REIT. The court upheld that Sunrise REIT is obligated to comply with its purchase agreement with Ventas. It also determined that a standstill agreement between HCP and Sunrise REIT is in effect, barring HCP from making proposals for Sunrise REIT.
HCP of Long Beach, CA, in February offered to buy Sunrise REIT for $18 (Canadian) a share. Earlier, Ventas disclosed an agreement to buy Sunrise REIT for $15 (Canadian) a share. Following HCP's bid disclosure, Ventas filed an application in the Ontario Superior Court of Justice demanding that Sunrise REIT comply with its purchase agreement with Ventas. Sunrise REIT shareholders are expected to vote on the Ventas deal this Friday.