Estia board greenlights $838m takeover by Bain
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The news: Estia Health’s board has agreed to a takeover proposal by private equity firm Bain Capital that values the aged care provider at $838 million.
The numbers: Bain had offered $3.20 a share in cash to Estia shareholders, a 50% premium to the closing share price on 21 March, a day before its bid. Estia shares last traded at $2.84 on Friday.
The context: Investors have been bearish on Estia, one of Australia’s biggest aged care providers, since the fallout of a national aged care inquiry in 2019 that revealed substandard practices across the sector, as well as a hit in occupancy during the COVID pandemic. Estia's current market valuation is down nearly 60% from its peak in 2015.
The source: ASX announcement
