The US private investment firm has made an offer for the ASX-listed Estia Health, one of the nation’s largest providers with 72 homes, caring for over 8,000 people.
Estia Health confirmed to the ASX this morning that it had received a non-binding, indicative bid after the market closed yesterday.
Bain Capital, which is based in Boston, Massachusetts, is offering $3 a share to take over the aged care business, which is chaired by Gary Weiss. Estia Health’s shares jumped a surprising 9.3% on Wednesday and Thursday, while the rest of the stock market was flat.
Bain Capital’s $3 a share offer is a 28.2% premium to Estia Health’s closing price on Thursday, and 23.5% higher than its 52-week high of $2.43.
On Monday, Estia Health announced to the ASX it intended to buy back up to 10% of its shares on issue in the next 12 months.
In February, Estia Health reported a loss of $25.3 million for the six months to 31 December 2022, an improvement on the $44.3 million loss reported in the previous six-month period. However, revenue and operating profit had increased.
Estia Health has a long history in the sector, growing out of a series of acquisitions by Sydney-based Quadrant Private Equity in 2013 and 2014. It built up the operator to 3,900 beds across 39 facilities before floating the business on the ASX at a value of $1 billion in December 2014.
Estia Health’s substantial investors include Wilson Asset Management at 9.64%, followed by Melbourne’s Copia Investors at 5.24% and Argo Investments with about 5%. Its largest investor Seven Group sold its 10% equity stake in the aged care provider in January.
Read more in the next Thursday’s SOURCE.
