Two major investors in Sabra Health Care REIT Inc. have opposed the REIT's proposed takeover of Care Capital Properties Inc., voicing concerns that Sabra is overpaying for the Chicago-based healthcare firm by as much as 30%, Reuters reports.

Eminence Capital, who owns 3.9% of Sabra's shares, voiced concerns about the REIT's exposure to skilled nursing facilities. Hudson Bay Capital Management, the second opposing investor that owns a 3.4% stake in the REIT, wrote an opposition letter  objecting to Sabra's falling shares, which have dropped 12% since the all-stock takeover deal was announced May 7, Bloomberg reports.

The Irvine-based REIT, which has a market cap of $1.6B, has been advised by several credit agencies to further diversify and expand its tenant base to better balance out potential negative effects from greater exposure to skilled nursing facilities.

The deal, which would combine 564 investments into a major health REIT, requires approval by a majority of the shareholders.

“There’s an attempt to kill the deal because the conventional wisdom here, and I wouldn’t disagree with it, is that the stock would probably pop back to where it was before the deal was announced,” Sabra CEO and Chairman Richard Matros said in an interview with Bloomberg.