American Realty Capital Healthcare Trust III Seeks Vote on Liquidation Plan
November 1, 2017 | James Sprow | Blue Vault
American Realty Capital Healthcare Trust III Inc. will hold its annual shareholder meeting December 21, primarily to vote on its proposed asset sale and liquidation plan.
Under the plan, the company will sell substantially all its assets to Healthcare Trust Inc. in an all-cash transaction, after which ARC Healthcare Trust III will liquidate and dissolve.
ARC Healthcare Trust III said the proposals must be approved by more than 50% of its outstanding common shares in order for it to pay the $15.75-per-share projected initial liquidating cash distribution in early January 2018. It estimates that stockholders will receive total liquidating distributions of between $17.67 and $17.81 per share.
American Realty Capital Healthcare Trust III, Inc. began raising capital in August 2014, issuing common shares at $25.00 per share. The offering was suspended as of December 31, 2015. The most recent net asset value per share was $17.64. On February 22, 2016, the Company’s board of directors initiated a strategic review to identify, examine and consider a range of strategic alternatives available to the Company as its current operations were deemed not sustainable on a long-term basis. Over the course of 12 months, the board’s Special Committee communicated with 25 potential buyers, including a mix of public owners, private owners and private equity funds. As a result of its strategic review, the Special Committee has approved and recommended the Plan of Liquidation and the proposed transaction to sell the Company’s assets to Healthcare Trust Inc. to maximize shareholder value.
The Advisor will not receive a subordinated performance fee in connection with the transaction. A shareholder vote is not required from Healthcare Trust Inc.’s shareholders.
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