NEWS
09/02/2015 11:10 EDT | Updated 09/02/2016 01:12 EDT

Ontario Teachers retirement fund to buy Amica Mature Lifestyles for $578 million

TORONTO — A subsidiary of the Ontario Teachers Pension Plan Board has a $578-million friendly deal to buy Amica Mature Lifestyles Inc., which operates luxury senior residences in Ontario, British Columbia and Alberta.

Amica's shareholders are being offered $18.75 per share (TSX:ACC) in cash — more than double the stock price at the close of trading on Tuesday.

The deal with the pension fund's subsidiary, BayBridge Seniors Housing Inc., requires approval from at least two-thirds of votes cast by Amica's shareholders at a meeting to be held Oct. 9.

The transaction is being supported by directors, executives and shareholders of Amica that collectively have 24.4 per cent of the outstanding shares.

Amica's board has agreed to pay BayBridge a $25-million termination fee under certain circumstances. Amica shareholders  of record as of Sept. 10 are also due to receive a cash dividend of 10.5 cents per share on Sept. 17.

"We are very pleased with this attractive offer and the significant value it represents to our shareholders," Amica Chairman and CEO, Samir Manji said in a statement.

BayBridge currently operates or has a vested interest in 41 operational senior living communities: 35 in the provinces of Alberta, British Columbia and Ontario and six in the United States. BayBridge also has six buildings under construction.

The Canadian Press