Estia Health skyrockets to near 5-year high up on finalizing Bain Capital’s buyout deal By Reuters

© Reuters. SUBMIT IMAGE: Logo of Bain Capital is evaluated at a press conference in Tokyo, Japan September 28, 2017. REUTERS/Kim Kyung-Hoon

By Rishav Chatterjee

(Reuters) – Estia Health on Monday signed an offer to be taken control of by U.S. investment firm Bain Capital for an equity worth of A$838 million ($550.82 million), sending out shares of the Australian aged care operator nearly 10% greater.

The A$3.20 per share proposition represents a 25.5% premium to Estia’s stock closing rate on June 6, prior to the deal was initially revealed.

Shares of Estia Health were up 9.9% at A$3.12, since 0045 GMT, striking their greatest given that September 2018.

In June, the business upgraded the marketplace on its intents to back Bain Capital’s sweetened takeover deal after supplying minimal access to its books to the suitor in April.

Estia is among Australia’s biggest aged care operators, having more than 6,500 locations in 70 websites throughout the nation.

“The Board is confident as to the outlook for the business, however, recognises that the scheme allows shareholders to realise certain cash value now at an attractive premium,” Estia Chair Gary Weiss stated on Monday.

“The improved offer price in June was a good one for Estia shareholders and the effective signing of the scheme shows some private equity deals do go through,” stated Henry Jennings, senior market expert at Marcustoday Financial Newsletter.

Bain Capital did not right away react to a Reuters ask for remark.

Estia’s board all suggested its investors enact favor of the proposition, including that an investor vote is set to take place in November.

The business stated in a declaration that under the offer, it is now allowed to pay completely franked dividends of approximately A$0.12 per share.

($1 = 1.5214 Australian dollars)


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