Five Star Quality Care remains uninterested in Senior Star’s $325 million bid for 33 of its properties, the company said in a Dec. 21 letter.
“After careful review of your public filings and your letters, the Board unanimously determined to re-iterate the preliminary reactions provided to you on November 30, 2015: Five Star’s owned assets are not for sale,” Jennifer B. Clark, Five Star secretary, wrote in the letter to William F. Thomas, which was filed with the U.S. Securities and Exchange Commission.
As McKnight’s Senior Living previously reported, William Thomas and Robert D. Thomas, co-founders and managing partners of Tulsa, OK-based GPA Inc., senior living community owner Senior Star Management Co. and investment holding company Gemini Properties, made an offer to representatives of Newton, MA-based Five Star on Nov. 30, which was rebuffed. William Thomas subsequently filed related documents with the SEC on Dec. 2 and Dec. 15, reiterating why he thought accepting the offer would be a smart move for Five Star.
In the Dec. 21 letter, Clark said that Five Star’s business plan, which it believes is in the best interest of its shareholders, calls for expanding the number of communities it owns, not selling communities it already owns. “The continued ownership of a significant number of communities provides a stable base for Five Star’s current and future operations,” she wrote. Further, Clark said, the company already is undertaking many of the initiatives that Senior Star suggested.
Five Star Quality Care operates more than 260 senior living communities across the country — with offerings including independent living, assisted living, memory care, skilled nursing, rehabilitation and continuing care retirement — through its Five Star Senior Living division.