Senior Star Asks FVE Shareholders to Address Underperformance

Mar 01, 2016, 13:15 ET from Senior Star Management Company

TULSA, Okla., March 1, 2016 /PRNewswire/ -- Senior Star Management Company (Senior Star) today issued a letter of concern to all shareholders of Five Star Quality Care Inc. (FVE or Five Star) regarding Five Star's financial performance and its intrinsic value.  

"During December 2015, Senior Star offered to acquire Five Star's 33 owned properties for $325 million. The transaction was designed to provide Five Star significant capital to redeploy in various strategic initiatives and also to monetize its deeply undervalued assets," William Thomas said.

Five Star declined the offer and expressed no interest in further discussions.

Robert Thomas said the intent of today's letter to shareholders is, "to focus Five Star's management and board on pursuing the right strategy for long-term growth. We believe Five Star has the potential to become a best-in-class manager both operationally and financially, delivering significant value to all shareholders. We're interested in learning if other shareholders concur."

Senior Star's letter encourages other shareholders to contact Five Star's management to discuss the Company's strategic plan for cash flow generation and sustainability, as well as growth potential.

William F. Thomas and Robert D. Thomas, co-founders of Senior Star Management Company, and certain donor-advised charitable funds, collectively may be deemed to beneficially own approximately 3.4 million shares of Five Star Quality Care, Inc., or approximately 6.9% of the shares outstanding. 

Headquartered in Tulsa, Oklahoma, Senior Star provides independent living, assisted living, memory care, nursing care, and home health services through its 2,200 units in 14 communities located in six states.

The full text of the letter was included as Exhibit 99.1 to a Schedule 13D amendment filed on March 1, 2016. A link to the full text of the letter appears below:

https://www.sec.gov/Archives/edgar/data/1159281/000101143816000476/exhibit_99-1.pdf

 

SOURCE Senior Star Management Company