Shareholders of Sun Healthcare Group, Irvine, Calif., have approved the company's previously announced plans to split into two companies, according to a news release.
Sun Healthcare shareholders OK spinoff plan
The skilled-nursing and assisted-living facility provider will spin off its operating assets into a new company that eventually will use the name Sun Healthcare Group. The company also is forming Sabra Health Care REIT, a real estate investment trust that will own the property of its facilities.
The original company owns and operates 166 skilled-nursing facilities, 16 facilities that combine skilled nursing with other senior-living options, 10 assisted-living facilities, two independent living centers and eight mental health centers. Other operating units that will become part of the new Sun include subsidiaries that provide rehabilitation therapy, medical staffing and hospice services.
Shareholders will receive one share in the new Sun and one share in Sabra for every three shares of original Sun that they hold as of the end of trading today, according to the release. A cash distribution totaling $10 million also will be made to shareholders. The shares of both companies will be traded on the Nasdaq exchange, as shares of original Sun are.
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