Brookdale Buyout with Chinese Firm Off the Table
The Chinese firm Zhonghong Zhuoye Group Co Ltd is no longer in talks to buy Brookdale Senior Living (NYSE: BKD), according to Bloomberg.
Zhonghong Zhuoye Group Co Ltd, a Beijing-based real estate and leisure firm, was, at one time, prepared to buy Brookdale for $20 per share, but the deal stalled, and has now finally faltered. Negotiations ended without a deal, SeekingAlpha reported, citing Bloomberg.
The news comes a day after an activist shareholder of Brookdale, Land & Buildings Investment Management LLC, put the pressure on Brookdale via a public letter urging the company to be more transparent about its ongoing strategic review process as it seeks a buyer.
The original deal floated with Zhonghong Zhuoye would have fetched as much as $4 billion for Brookdale, which is based in Brentwood, Tennessee.
Brookdale’s share price has plummeted over recent months as its operating income dropped in 2017 and it posted losses in quarterly earnings reports. The end of the potential deal with the Chinese firm come just days before Brookdale is scheduled to post its earnings for the third quarter of 2017.
Brookdale’s stock price was up more than 2.5%, hovering near $9.80 as of mid-day trading Tuesday.
Brookdale declined to comment for this story.
Written by Amy Baxter