Court approves Bain's Estia buyout

The news: The NSW Supreme Court has approved Bain-controlled Firebird BidCo's takeover of aged care provider Estia Health.

The numbers: Bain's offer of $3.20 per share was a 50% premium to Estia's share price in March this year and effectively valued the aged care provider at $838 million. EHE is currently trading at around $3.075 with a market cap of $792.6 million. Trading of Estia shares will be halted after Wednesday's close ahead of scheme implementation on Friday 15 December.

The context: Estia's valuation has recovered to above its 2019 level, which dropped after an aged care inquiry uncovered substandard practices across the sector and the pandemic put a dent in occupancy. Its share price is still less than half its 2015 peak, but the sheer numbers of Australia's ageing population provides room for revenue growth, despite the costs of industry headwinds such as staff shortages and regulations introduced in the wake of the aged care royal commission.