TPG Global revokes $1.2 bln bid for Australia's InvoCare, shares drop 17% (updated)

InvoCare

24/04/2023 02:48

(Adds shares and details of director nomination)
    By Harshita Swaminathan
       April 24 (Reuters) - Australian funeral services
provider InvoCare  IVC.AX  said on Monday U.S.-based private
equity firm TPG Global has withdrawn its A$1.81 billion ($1.21
billion) buyout bid, leading shares to record their biggest
intraday drop in 3 years.
    TPG's move comes after it was not granted due diligence
following its A$12.65 per share indicative offer — a 41.3%
premium at the time — which was deemed by InvoCare's board to
"not provide compelling value for shareholders."
    InvoCare had previously said it was open to granting TPG
access to its books if it came back with a better offer, and
some analysts were fairly confident a deal would materialise.
    InvoCare offered TPG access to limited, non-public financial
information to help it rethink its bid price. TPG declined to
sign a confidentiality agreement and did not take up the
InvoCare offer. 
    With the deal having collapsed, TPG is now pushing for the
nomination of a non-executive director, as it holds about 19.2%
of InvoCare's shares.
    InvoCare said the board will consider the proposal. 
    The company's shares plunged as much as 16.9% to A$10.07,
their worst intraday loss since March 25, 2020. It was also the
top loser on the S&P/ASX 200 index  .AXJO . 
   
($1 = 1.4941 Australian dollars)

 (Reporting by Harshita Swaminathan; Editing by Christian
Schmollinger and Uttaresh Venkateshwaran)
 ((Harshita.Swaminathan@thomsonreuters.com;))