Pacific Smiles shares surge on improved takeover bid from Genesis Capital
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The news: Dental services chain Pacific Smiles' shares have risen on the back of an improved revised non-binding proposal from private equity firm Genesis Capital to acquire all of its shares.
The numbers: Pacific Smiles announced today that Genesis offered to buy all the shares of Pacific Smiles for $1.75 in cash per share via a recommended scheme of arrangement, after acquiring a 19.9% stake in the group in January.
In December, Pacific Smiles rejected a $223 million takeover bid by Genesis Capital, or $1.40 in cash per share, calling it "opportunistically timed" and "materially undervaluing Pacific Smiles", though the suitor was offered limited due diligence.
Pacific Smiles surged 9% to $1.63 by 1:30pm AEDT after the news was announced.
The context: Subject to the parties negotiating and entering into a binding agreement, at a price of least $1.75 in cash per share, the board said it currently intends to recommend that shareholders vote in favour of the acquisition.
The revised proposal also states that Genesis Capital remains interested in allowing Pacific Smiles shareholders the opportunity to roll their shares into unlisted equity.
Pacific Smiles' board said it has agreed to grant Genesis Capital the opportunity to conduct further due diligence on a non-exclusive basis, to enable it to put forward a binding proposal.
The source: ASX announcement
