Religare Health Trust to be bought for $966m.

Religare Health Trust's unit price spiked after news that Fortis is seeking to delist the business trust was released earlier this morning.

Surging to as high as 96.5c a unit, it was a 19% increase from the previous trading session in a matter of minutes.





"In an exchange filing on Wed morning (Nov 15), RHT Health Trust Manager Pte Ltd said it has received a proposal from Fortis to acquire all the sale securities held by RHT Singapore's wholly-owned subsidiaries, Fortis Global Healthcare Infrastructure Pte Ltd and RHT Healthtrust Services Pte Ltd.

"The trustee-manager has not declared a distribution for the six months ended Sept 30, as it has not received certain service fees and interest income on the CCDs from the relevant Fortis entities; Fortis is proposing for these to be paid alongside the purchase consideration."

Read article here:
Fortis proposes to buy RHT Health Trust's entire asset portfolio for S$966m





With about 810 million units in issue, if this goes through, a back of the envelope calculation shows that each unit could be getting more than a dollar.

Although it seems that I will be losing another passive income generator, I cannot really complain if it is a more than fair offer.

For those who are thinking of punting, please remember the risk involved.

If the purchase should fail, unit price would probably take a dive back down.




Related post:
Increased investment in RHT by 150%.