Five Star Quality Care (FVE) shares were higher 10% on Thursday property management firm Senior Star Management Company said that it intends to launch a tender offer for 10 million shares of the operator of senior living communities at a tender offer price of $3.45 per share.
Senior Star called on Five Star Quality Care shareholders to take no action to a previous $3-per-share offer from ABP Acquisition.
“We have closely monitored the recent events at Five Star relating to the $3.00 per share tender offer launched by an entity owned by Barry Portnoy and Adam Portnoy for up to 10 million shares of the company’s common stock,” Senior Star Management said in a statement. “We are encouraged by the precedent set by Five Star’s independent board members in waiving certain ownership restrictions and granting certain approvals in order to clear the way for the Portnoy’s tender offer,”
Senior Star said William Thomas and Robert Thomas, co-founders of Senior Star Management Company, and certain donor-advised charitable funds, may be deemed to beneficially own approximately 3.36 million shares of Five Star Quality Care or approximately 6.8% of the shares outstanding.