The Ensign Group (NASDAQ: ENSG) has completed the spin-off of The Pennant Group Inc., (NASDAQ: ENSG), which separates Ensign’s home health and hospice segments from its skilled nursing, rehabilitation care services, senior living and other holdings.
As part of the spin off, Ensign’s stockholders were given one share of Pennant common stock for every two shares of Ensign common stock they held at the end of the business day on September 20, 2019.
“We are thrilled to complete the spin-off of Pennant and couldn’t be more optimistic about their future and the future of Ensign. This is the second spin-off we have completed in the last 5 years and believe that this transaction, much like the spin-off of CareTrust REIT, Inc. in 2014, will be a great long-term benefit to our many stakeholders,” The Ensign Group’s Executive Chairman, Christopher Christensen, said. “Our guiding principle in this transaction has always been to make sure both Ensign and Pennant would not only be very healthy in terms of their balance sheets, but that both would be poised to drive the enormous organic growth potential within all our respective operations while having enough dry powder to continue acquiring and transforming underperforming health care operations.”
As of Sept. 19, 2019, Ensign common stock were traded in two ways, a “regular way” in which shares of Ensign common stock traded with an entitlement to receive shares of Pennant common stock on the distribution date; as well an “ex-distribution” market (NASDAQ: ENSGV) in which shares of Ensign common stock traded without an entitlement to receive shares of Pennant common stock on the distribution date.
Effective Oct. 1., all shares of Ensign common stock will trade only on a “regular way” market without any entitlement to receive shares of Pennant common stock, and shares of Pennant common stock commence trading on the NASDAQ Global Select Market on a “regular way” market.