SAN DIEGO, May 8, 2017 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP (J&W) has launched an investigation into whether the board members of Care Capital & Company (NYSE: CCP) breached their fiduciary duties in connection with the proposed sale of the Company to Sabra Health Care REIT, Inc. (NASDAQ: SBRA). Care Capital focuses on owning, acquiring, and leasing skilled nursing facilities and other healthcare assets operated by private regional and local care providers in the United States.
On May 7, 2017, Care Capital announced it had signed a definitive merger agreement with Sabra. Under the terms of the agreement, Care Capital shareholders will receive 1.123 shares of Sabra common stock for each share of Care Capital common stock they own. Care Capital stock closed at $28.12 on May 8, 2017.
The investigation concerns whether the Care Capital board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Care Capital shares of common stock.
Nationally recognized Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration, especially given the following:
- The Company's positive outlook for future revenue and earnings growth.
- One Wall Street analyst has a $32.00 price target on the stock.
- Last year the stock traded as high as $31.56.
- The current dividend yield is over 8.00%
Care Capital has a change of control provisions for key executives. As of December 31, 2016, potential payments for termination associated with a change in control, was valued at over $21 million.
If you are a shareholder of Care Capital and believe (1) the proposed buyout price is too low or (2) the merger benefits management more than the shareholders, and (3) you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-814-4471.
About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
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SOURCE Johnson & Weaver, LLP