SunLink 将与 Regional 合并，以换取 Regional 发行总计141万股普通股和The Medical Care REIT Regional Health Properties (RHE.US) will acquire SunLink Health Systems (SSY.US) through a stock trade.
According to Zhito Finance APP, the Medical Care REIT Regional Health Properties (RHE.US) will acquire SunLink Health Systems (SSY.US) through an all-stock trade. The two companies have signed a final merger agreement and plan, and the transaction is expected to be completed in the spring of 2025.
On Monday before the market opened, Regional's stock price surged by 260.65% to $5.59, while SunLink's stock price rose by 36.26% to $1.24.
SunLink will merge with Regional in exchange for Regional issuing a total of 1.41 million shares of common stock and 1.41 million newly authorized D series 8% cumulative convertible redeemable preferred shares, with a liquidation preference of $10 per share.
The merger has been unanimously approved by the boards of directors of both companies, and the completion of the transaction is contingent upon the approval of Regional and SunLink shareholders, regulatory approvals, and the satisfaction of customary closing conditions.
Regional has agreed to provide one share of common stock for every five shares of SunLink stock and, as adjusted, to provide one share of preferred stock.
Three shares of preferred stock can be converted into one share of Regional common stock.
The merger has received unanimous approval from the Boards of Directors of both companies. SunLink shareholders will own approximately 43% of the shares in the merged company.
As of December 31, SunLink has approximately $17.6 million in Assets and no long-term debt. Regional expects that by the end of fiscal year 2026, pre-tax cost synergies will reach approximately $1 million.
Brent S. Morrison, Chairman and CEO of Regional, stated: "This merger will create a stronger balance sheet and a larger merged company. Additionally, by combining SunLink's complementary Assets with Regional's Medical Care Facilities platform, the merged company will be well-prepared for future growth."
