NEW YORK, July 2, 2026, 10:07 EDT
- Select Medical Holdings Corporation NYSE:SEM last traded at $16.51, just a penny above the $16.50 per share cash buyout, before NYSE halted and started delisting its shares.
- The merger took effect at 12:01 a.m. July 1. The company asked the NYSE to halt trading before the market opened that day.
- SEM was dropped from the S&P SmallCap 600 and Gulfport Energy Corp NYSE:GPOR took its place ahead of the July 1 open, according to S&P Dow Jones Indices.
- U.S. equities traded Thursday. NYSE will close Friday, July 3, for Independence Day observed, according to the New York Stock Exchange.
Select Medical Holdings Corporation NYSE:SEM closed its run on the New York Stock Exchange with shares finishing nearly right at the cash price for its merger. That wrapped up its time in the market as an option on hospitals, rehab clinics, and steady cash flow.
Select Medical, based in Mechanicsburg, Pennsylvania, said June 30 it wrapped up its sale to a group led by Executive Chairman and co-founder Robert A. Ortenzio, Senior EVP of Strategic Finance and Operations Martin F. Jackson, and Welsh, Carson, Anderson & Stowe. Shareholders get $16.50 per share in cash, putting Select Medical’s value near $3.9 billion, according to the company. The merger closed at 12:01 a.m. on July 1. SEM stopped trading and lost its NYSE listing the same day.
SEM last traded at $16.51, off a penny from the previous close. Volume hit 27.8 million shares. That’s a 0.06% premium to cash at $16.50. The stock’s high before the halt was $16.56, six cents above the cash price.
| SEM deal/market line | Figure |
|---|---|
| SEM last traded at | $16.51 |
| Merger cash price | $16.50 |
| Premium to merger cash | +$0.01, or +0.06% |
| High and low before halt | $16.56 / $16.51 |
| Latest volume shown | 27.8 million shares |
| Market value at last price | $2.05 billion |
| Total paid for common shares, excluding rollover and carve-outs | about $1.7 billion |
| Shares assumed cashed at $16.50 | about 103.0 million |
| Total shares by market cap math | about 124.0 million |
The spread is key here since public holders are done with the trade, but the business isn’t. According to the SEC filing, every common share on record before the deal closed, except for rollover, restricted, excluded and appraisal shares, gets $16.50 cash. The filing also notes rollover shares went to the parent and were canceled with no payment.
Filings and quote data suggest around 21 million implied shares aren’t included in the $1.7 billion cash-paid figure. That’s about 17% of the total implied shares in the final market cap. According to the filing, the money comes from equity from WCAS, some holder rollovers and outside debt.
The proxy gives the reason behind the final one-cent spread. Daniel J. Thomas, who chairs the special committee, told Ortenzio $16.00 per share was “inadequate,” the proxy says. Ortenzio later replied that anything above $16.50 “would not be possible.” The special committee raised its number to $16.50 and told Ortenzio it would not accept anything lower. SEC
Goldman Sachs & Co. LLC, which advised the special committee, called the $16.50 cash offer “fair from a financial point of view” for holders other than the excluded holders, according to its opinion. Goldman said its opinion relied on certain assumptions and limits, and it wasn’t required to update the opinion for later events. SEC
The index move hit right away. S&P Dow Jones Indices dropped Select Medical from the S&P SmallCap 600 and brought in Gulfport Energy Corp NYSE:GPOR before the open July 1, shifting a slot from health care to energy. Gulfport was up 2.25% at $169.13 early Thursday.
| Stock or ETF | Latest price | Change |
|---|---|---|
| Select Medical Holdings Corporation NYSE:SEM | $16.51 | -0.06% |
| Encompass Health Corp (NYSE:EHC) | $104.68 | up 3.25% |
| HCA Healthcare Inc NYSE:HCA | $412.06 | up 4.79% |
| Tenet Healthcare Corp NYSE:THC | $205.00 | up 7.22% |
| Community Health Systems Inc NYSE:CYH | $3.76 | up 6.21% |
| iShares Russell 2000 ETF NYSEARCA:IWM | $302.02 | up 0.90% |
| SPDR S&P 500 ETF Trust NYSEARCA:SPY | $750.83 | up 0.68% |
Hospital stocks moved Thursday, but SEM is locked into a cash exit. Select Medical left its 2026 guidance unchanged in April: revenue of $5.6 billion to $5.8 billion, adjusted EBITDA of $520 million to $540 million, fully diluted EPS of $1.22 to $1.32. After the cash deal, public shareholders don’t own that outlook.
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