Pacific Smiles shares gain on new Genesis Capital offer
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More news: Shares in Pacific Smiles were boosted by news of a revised takeover offer by long-term suitor Genesis Capital, a month after shareholders in the dental services chain blocked a proposed acquisition by rival suitor NDC Bidco.
Pacific Smiles shares rose 6% to $1.86 by 10:45am AEST, having gained nearly 30% since the start of the year.
Genesis Capital makes fresh takeover bid for Pacific Smiles
The news: Pacific Smiles has received a fresh takeover offer from private equity firm Genesis Capital, a month after shareholders in the dental services chain defied the board by voting down a proposed acquisition by rival suitor NDC Bidco.
The numbers: Beam Dental Bidco, an associate of Genesis, has made a new off-market takeover bid to acquire all of Pacific Smiles' shares for a choice of $1.90 cash per share, 1 share in Beam's holding company (Holdco) per share, or 47.5 cents cash and 0.75 Holdco shares per share.
Genesis said the cash offer price represents a "material premium" relative to historical trading of Pacific Smiles up to 15 December 2023, which was the last trading day before the announcement of Genesis' initial indicative proposal of $1.40 per share.
Pacific Smiles shares last closed at $1.76, having gained nearly 30% since January.
The context: Genesis noted that the cash offer removes risk in shareholders' investment in Pacific Smiles, flagging uncertainty around the company's search for a new chief executive and chief financial officer, after the resignation of managing director and CEO Andrew Vidler and CFO Matthew Cordingley within the last month.
The private equity firm also said the option to participate in the alternative offers provides Pacific Smiles shareholders "with an opportunity to retain an indirect investment in Pacific Smiles alongside an experienced healthcare investor".
Last month Pacific Smiles shares dived after shareholders defied the board by voting down a proposed takeover by Genesis' rival suitor NDC. Genesis, which had its previous takeover offer of $1.90 per share topped by NDC's improved bid of $2.05 per share, holds a 19.9% stake in Pacific Smiles, and told the group it would vote against the resolution.
The source: ASX announcement
