Australia’s Estia Health soars on sweetened $552 mln bid from Bain Capital – ET HealthWorld


New Delhi: Australia’s Estia Health on Wednesday said it intended to back Bain Capital’s sweetened takeover offer that valued the aged-care provider at A$826.8 million ($552.05 million), sending its shares about 19 per cent higher to a near five-year peak.

Under the revised proposal, Bain Capital would offer A$3.20 in cash for every Estia share, which represents a 25.5 per cent premium to the stock’s last closing price, and up from a previous offer of A$3.00, Estia Health said in a statement.

“Following careful consideration, the board has determined that it is in the interests of shareholders to progress with the revised proposal and allow Bain Capital to undertake further due diligence to enable it to provide a binding proposal.”

The firm had earlier provided limited access to its books in April to the US investment company in hopes of a sweetened bid.

Additionally, Estia’s board is also permitted to pay a fully-franked dividend of A$0.12 per share, allowing eligible shareholders to receive up to about 5.1 AU cents per share in franking credits. ($1 = 1.4977 Australian dollars) .

  • Published On Jun 7, 2023 at 11:20 AM IST

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