As of June 2, NorthWest Healthcare Properties REIT owns a 76.99% stake in Generation Healthcare REIT, allowing to it to implement "a number of its intentions" for the real estate investment trust when it launched its takeover bid in April.
Owning more than a 75% stake in the Australian company gives the Canada-based REIT the power to, specifically, replace the current Generation Healthcare responsible entity with its own nominees and delist the company on the Australian stock exchange.
When it amassed a 50% stake, Northwest said it will conduct a review of the target's capital structure, distribution policies, operations and strategies.
In light of the recent development, NorthWest CEO Paul Dalla Lana reiterated a call for Generation Healthcare unit holders to immediately accept Northwest's offer before its June 8 closing, saying it must be done "to avoid possible minority unit holder risks and reduced trading liquidity."
As of June 2, US$1 was equivalent to A$1.34.