March 24 (Reuters) – Australian aged-care supplier Estia Well being Ltd (EHE.AX) stated on Friday it obtained a non-binding buyout proposal from U.S. personal funding agency Bain Capital for A$775.1 million ($517.77 million), sending its shares to an over 3-year excessive.
The A$3.00 money per share proposal, which is at a 28.2% premium to Estia’s final shut, is among the many newest proposals by a personal fairness agency since final 12 months amid rising merger and acquisition exercise in Australia.
The board of Estia Well being is contemplating the indicative proposal to evaluate whether or not it’s in the very best pursuits of shareholders to have interaction with Bain Capital, the corporate stated in an announcement.
Shares of the Sydney-based firm surged as a lot as 21.4% to A$2.84, their highest since November 2019. It was additionally on observe to put up its greatest soar in additional than two years.
Native media had reported on Thursday {that a} potential acquirer was shopping for shares within the firm primarily based on its quantity over the previous two days.
On Friday, Estia stated it isn’t conscious of the identification of the occasion or events who’ve acquired shares over the previous two days.
Just about the native media report, brokerage RBC stated it had a optimistic outlook for the aged care sector on enhancing occupancy charges, dissipating COVID impacts and smaller suppliers exiting the market.
Estia final month posted internet loss from unusual actions after tax attributable for six months ended Dec. 31 of A$25.3 million, in comparison with a lack of A$8.1 million a 12 months prior.
In April final 12 months, EML Funds (EML.AX) was in talks with Bain Capital for a possible buyout, however the firm stated the talks had ceased with out an agreed deal.
($1 = 1.4970 Australian {dollars})
Reporting by Ayushman Ojha; Enhancing by Rashmi Aich
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