Pacific Smiles shares gain on takeover hopes
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More news: Shares in Pacific Smiles rose nearly 2% to $1.45 each in early trading on the ASX after the dental services chain kept the door open on a takeover bid by private equity firm Genesis Capital, while rejecting its initial $1.40 proposal. Pacific, which also outlined robust growth in FY24 underlying earnings and patient fees, said it has given the bidder limited access to certain non-public information to enable it to offer a ‘materially improved proposal’.
Pacific Smiles leaves door open on private equity bid
The news: Dental services chain Pacific Smiles has rejected an unsolicited $223 million takeover bid by Genesis Capital but has offered the private equity suitor a limited due diligence.
The numbers: The dental group on Thursday rejected a $1.40 a share offer made by Genesis after it amassed an 18.75% stake, saying it ‘materially undervalues’ the company. Separately, it issued guidance for FY24, with a forecast for underlying earnings of $26 million to $28 million, and patient fees of $293 million to $297 million. Pacific Smiles shares closed at $1.42 on Wednesday.
The context: The board of Pacific Smiles acknowledged the company’s share price performance has been disappointing but said it is confident in the group’s prospects, days after appointing former Wesfarmers Health executive Andrew Vidler as the new CEO. Although it rejected Genesis' present bid, the company left the door open for a ‘materially improved proposal’ and will offer the bidder limited access to certain non-public information on a non-exclusive basis.
The sources: ASX announcement, ASX
