The ASX-listed residential care provider has dismissed the US private investment firm’s $3 a share bid for the business yesterday – but left the door open to an improved offer.
As we reported here, Bain launched the non-binding, indicative bid two weeks ago. The offer was a 28.2% premium on Estia Health’s then-share price which has since risen to $2.62 as of 4 April.
The provider has 72 homes and over 8,000 residents across South Australia, Victoria, New South Wales and Queensland.
“The Board of Estia Health has carefully considered, including with its advisors, the Indicative Proposal and has spoken with a number of its major shareholders,” it said in a statement to the ASX.
“The Board does not regard the Indicative Proposal as compelling having regard to price and conditionality.”
However, the provider has opened its books for a limited time so Bain can ascertain if it wants to increase its offer.
“In order to determine if Bain Capital is able to formulate an improved proposal, Estia Health has offered to provide a limited period of access to certain non-public financial and other information on a non-exclusive basis. The provision of this information is subject to certain conditions, including the signing of an appropriate confidentiality and standstill agreement,” the statement reads.
“The engagement between Estia Health and Bain Capital is preliminary in nature. There is no certainty that the Indicative Proposal will result in a revised proposal, that any revised proposal will be recommended by the Board or result in a transaction being put forward to Estia Health shareholders for consideration.”
While there is no guarantee that Bain will raise their bid, Estia Health has announced that it will suspend its current share buy-back until further notice.
Stay tuned then.
