Finland's Mehiläinen in $403 mln deal for Pihlajalinna

Pihlajalinna Oyj

05/11/2019 07:33

HELSINKI, Nov 5 (Reuters) - Finland's Mehiläinen announced a
recommended cash offer for rival healthcare services provider
Pihlajalinna Oyj  PIHLIS.HE   which values its shares at 362
million euros ($403 million).
    Pihlajalinna's board recommends the offer and shareholders
representing 63.2% of all shares have accepted it,
venture-backed Mehiläinen said.  
    It offered 16.00 euros per Pihlajalinna share, which closed
on Monday at 10.96 euros.
    "Adequate scope and scale are required in order for health
and social care service providers to be able to offer best in
class quality, effectively exploit digitalisation and to develop
innovative services," Mehilainen said in a statement.
    "The scale of the combined company will also support the
international expansion targeted by Mehiläinen," it said. 
    CVC Capital Partners funds own 57% of Mehiläinen.
    ($1 = 0.8989 euros)

 (Reporting by Jason Neely)