Pacific Smiles to consider revised Genesis Capital takeover bid
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The news: ASX-listed dental services chain Pacific Smiles said it will consider a revised takeover bid tabled by private equity firm Genesis Capital, while the board continues to recommend an earlier proposal by rival suitor NDC BidCo.
The numbers: Pacific Smiles said it has received an improved takeover offer from Genesis, which acquired a 19.9% stake in the group in January, for a cash consideration of $1.90 per share.
In April, Pacific Smiles entered into a scheme implementation deed with NDC BidCo — a wholly owned subsidiary of NDC HoldCo which operates the National Dental Care centres — following a cash offer of $1.91 per share.
In December, Pacific Smiles rejected a $223 million takeover bid by Genesis, or $1.40 in cash per share, calling it "opportunistically timed" and "materially undervaluing Pacific Smiles", though the suitor was offered limited due diligence.
The context: Pacific Smiles said it "continues to unanimously recommend the NDC scheme", though its board is assessing Genesis' revised proposal, including whether is is a "superior proposal" under its scheme implementation deed with NDC.
The source: ASX announcement
