Australia's Estia Health receives sweetened bid from Bain Capital (updated)

Estia Health

07/06/2023 01:28

(Adds details on revised offer in paragraphs 3-5)
       June 7 (Reuters) - Australian aged-care provider Estia
Health  EHE.AX  said on Wednesday it received an improved offer
from Bain Capital, implying a total deal consideration of
A$826.8 million ($552.05 million). 
    The company had earlier provided limited access to its books
in April for the U.S. investment company in hopes of a sweetened
bid.
    Under the revised proposal, Bain Capital will offer A$3.20
in cash for every Estia share, which is at a 50% premium to the
stock's closing price on March 21 and up from a previous offer
of A$3.00, Estia Health said in a statement. 
    Additionally, the board is permitted to pay a fully-franked
dividend of A$0.12 per share, allowing eligible shareholders to
receive up to approximately 5.1 AU cents per share in franking
credits. 
     "Following careful consideration, the Board has determined
that it is in the interests of shareholders to progress the
Revised Proposal and allow Bain Capital to undertake further due
diligence to enable it to provide a binding proposal," Estia
Health said. 
    The company added that it had urged its shareholders to vote
in favour of the offer in the absence of a superior proposal, if
Bain Capital is able to come up with a binding offer consistent
to the revised bid.

    ($1 = 1.4977 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru; Editing by Rashmi
Aich)
 ((Archishma.Iyer@thomsonreuters.com;))