Vital Healthcare flags rights issue next month
Medical and healthcare property investor suspends its distribution reinvestment plan for the third quarter.
Vital Healthcare Property Trust, whose Canadian cornerstone investor is seeking to build its stake, is planning a rights issue next month and has suspended its distribution reinvestment plan for the third quarter.
The medical and healthcare property investor's manager, Vital Healthcare Management, intends to undertake a pro-rata renounceable offer of new units in late July, it says in a statement, without indicating the size, terms or pricing.
Because of the issue, the manager's board has suspended the third-quarter distribution reinvestment plan, where investors can forgo cash dividends for more units.
That means investors will be paid 1.925 cents per unit in cash for the quarter, less any applicable withholding tax.
In April, cornerstone shareholder and the manager's owner NorthWest International Healthcare Properties Real Estate Investment Trust said it plans to lift its stake in Vital Healthcare to just under a quarter, buying units on market at prices between $1.15 and $1.38.
On June 18, NorthWest principal Paul Dalla Lana lodged a substantial shareholder notice stating he had almost 61.5 million units, or just over 20 percent of the property trust.
The units were unchanged at $1.40 today and have gained 11 percent this year.
(BusinessDesk)
Paul McBeth
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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Vital Healthcare flags rights issue next month
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