(Bloomberg) — Senior-housing companies in Canada rallied after Amica Mature Lifestyles Inc. agreed to be acquired by a pension fund-backed company, extending an industrywide consolidation.
Amica, a Vancouver-based provider of luxury seniors residences, surged to a record Wednesday after saying it will combine with BayBridge Seniors Housing Inc. BayBridge, backed by the Ontario Teachers’ Pension Plan, offered C$18.75 ($14.10) a share, more than double Tuesday’s closing price of C$8.79. Chartwell Retirement Residences, the largest operator of assisted-living homes across Canada, also rose.
“This is a really big positive mark on what these types of assets are worth,” Jimmy Shan, a real estate analyst at GMP Securities LP who covers both Amica and Chartwell, said by phone Wednesday. “Chartwell is the most comparable company. This confirms that Chartwell’s portfolio is worth more than people thought.”
Chartwell, based in Mississauga, Ontario, climbed 6.8 percent to C$12.34 at the close in Toronto. Amica jumped 111 percent to C$18.51, the highest closing price in the company’s history.