More life in the tortuous takeover battle for IVF operator Virtus, with private equity firm BGH changing tack yesterday by offering to launch an off-market bid for the company by buying up shares at $8 each.
BGH owns 19.99% of Virtus shares but lost a fight with UK-based investor CapVest for the company, with the Virtus board recommending CapVest’s offer of $8.25 per share.
The new offer was structured to allow BGH to start buying from Wednesday at $8.
CapVest’s offer required 75% shareholder approval, however, and BGH has vowed to vote its stake against any CapVest acquisition offer.
Earlier this week the Virtus board told investors that they must vote for the deal to receive the $8.25 a share payment.
CapVest has offered an alternative of $8.10 that would require 50% shareholder approval.
The offer would provide shareholders with “an opportunity to divest as much Virtus stock as they deem appropriate” with certainty and without having to pay brokerage, BGH told the market.
Virtus told shareholders to sit tight and do nothing. The board said it would look at the new offer from BGH.
“Virtus has now received seven competing proposals to acquire Virtus from BGH and CapVest. Until the bidding contest completes, there is no need for shareholders to take any action.”
“There will be plenty of time for shareholders to decide which proposal they wish to accept and shareholders should wait for further advice from the Virtus Board before making any decision.”
Virtus shares ended above the buying price of $8 at $8.15 on volume of 635,506 shares. The higher close suggests there is some support for CapVest’s offer.
It increasingly looks like CapVest will get control of Virtus, but not 100%, meaning a laborious situation for a while yet.
