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Sun Healthcare says restructuring approved

Fri, 11/05/2010 - 8:45am
The Associated Press

Health care facility operator Sun Healthcare Group Inc. said Friday shareholders have approved its restructuring plan, which will separate Sun into two publicly traded companies.

The company will split into Sun Healthcare Group Inc., which will operate skilled nursing centers and assisted living centers, and Sabra Health Care REIT Inc., which will own all its real estate assets. The new Sun Healthcare formerly did business as SHG Services Inc. The changes were proposed in May and now that shareholders have approved, they are expected to be complete by Nov. 15.

Shares of the new Sun Healthcare will trade under the symbol "SUNHV" on a when-issued basis starting Monday, and Sabra shares will trade as "SBRAV." Shares of Sun Healthcare, which trade under the ticker symbol "SUNH," will stop trading Nov. 15. On Nov. 16, Sabra shares will begin trading under the symbol "SBRA." Sun shares will trade normally under the "SUNHV" symbol for about 20 business days, and after that they will revert to the "SUNH" symbol.

The company will distribute cash and stock to its shareholders on Nov. 15. On that date, the company will distribute 13.35 cents per share to its stockholders, and will distribute one share of the new Sun Healthcare for every three shares of the older company the shareholder owned.

Sun Healthcare stock fell 3 cents to $9.50 in morning trading. The shares have ranged from $6.67 to $10.34 in the last year.

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