Boston-based private equity firm Bain Capital has increased its takeover bid for ASX-listed aged care provider Estia Health to $3.20 per share with a non-binding offer.
The Estia Health board has recommended shareholders “progress” the offer and allow Bain to conduct further due diligence before deciding whether to make a binding proposal.
The cash per share price non-binding offer, if accepted, will be reduced by the cash amount of future dividends, with Estia Health on track to pay shareholders a $0.12 per share fully franked dividend.
Bain first launched its takeover bid for Estia Health in March this year, offering $3.00 per share. The aged care provider rebuffed the offer, but opened its books to the suitor in the hopes a higher offer might eventuate.
The new offer is still subject to a number of conditions, including Bain completing due diligence checks, which is has 30 working days to complete.
The deal would also require approval of the Foreign Investment Review Board.
Estia Health shares are suspended from trade, but last traded at $2.55, up 18% in the last year.
The Sydney-based provider is one of Australia’s larger aged care operators, with 70 plus homes in SA, VIC, NSW and QLD., caring for over 8,000 residents annually.
